The Growth Of The Australian Economy - 1546 Words

In the last three years, the Australian economic performance is dominated by economic downturns. Recently, Australia facing two crucial issues in their economy, those are increasing budget deficit and houses affordability. In the long term, those two issues can deteriorates the economy. By increasing budget deficit, it affect to a decrease in living standard because the future generation need to pay more tax for paying the debt. As the housing prices goes higher and significantly overvalued, the Australian economy growth slowly. And affect the Australian economy. The Australian government and The Reserved Bank of Australia (RBA) need to overcome new fiscal policy and monetary policy in order to maintain these issue. This essay will argue†¦show more content†¦First, the economic growth is not performed well, because the GDP annual growth is below average, which fluctuates between 1% to 2%. The inflation rates also are below initial expectation, which is only stand for around 1.7% and it started to reach deflation. Even though, the economic growth decline, the unemployment rate is remained stable at the point around 5.7 percent. The living standard also remain in the same rate. However, the gap between the richer and poorer increases with almost 13-percentage point. The overall trends shows that Australian economy is in moderate level, but the GDP annual growth is below expectation. In addition, recently Australia are facing two important issue, which are increasing budget deficit and aging population. If the government does not give the efficient policy for solving this problem, it can affect to decline in Australian economic performance. Nowadays, in some developed countries its housing prices have significant increases within a period of a short time. Australia is one of the developing countries that the house prices become extremely expensive and it is overvalued in the market. This lead affordability decreases in almost all regions of Australia, with the most unaffordability house prices is Sydney and followed by Melbourne, Canberra, Brisbane, Adelaide, and Hobart (Scutt, 2016). This caused the housing prices turn out to be a serious issue. One of