Comparison Report of GDP for China and Australian Economic Growth

Discuss about the China and Australian Economic Growth for Comparison of GDP.

Answer:

Introduction

Fig (c): Australian and China GDP for the Past Five years

Fig (a) shows that the GDP of Australia has a falling trend for the five years whereas Fig (b) indicates that the China GDP has a rising trend. Fig (c) reveals that before the year 2013 Australian GDP was always way above the China GDP. The Australian GDP was constantly rising until it reached its climax in 2013. After 2013, the Australian economy began performing poorly; its GDP constantly fell until to the current period. Ye (2013), pointed out that it would take half a century for Australia to achieve the same level of GDP as China. Though the China economy performed poorly as compared to China, its GDP has been rising year after year. In 2014, the China GDP was way above Australia. The comparison for the five years period shows that the greatest difference in GDP performance was experienced in 2015; during this period, China was at its climax level whereas the GDP of Australia was too low.

Factors for Increased GDP Growth Rate in Australia and China

Conclusion

There are many similarities which have impacted the GDP of both Australia and China. The two are major exports with excellent trade agreements. Both are open to foreign investors who raise the investment level thereby creating more employment opportunities. The effectiveness of the government determines the economic growth.  A strong financial system is essential for an economy to have efficiency in production as it boosts the confidence of investors. The availability of resources and a ready market for them raises the level of foreign revenue. The recent increment in Australian unemployment is the reason for its falling GDP.

References

Luke.Metcalfe, (2014). Australia vs China: Economy Facts and Stats. [Online] Nationmaster.com. Available at: https://www.nationmaster.com/country-info/compare/Australia/China/Economy [Accessed 24 Sep. 2016].

McTaggart, D., Findlay, C. and Parkin, M. (2012). Macroeconomics. Frenchs Forest, N.S.W.: Pearson Australia.