Australia's Economic Growth
Australia is one of the major economic players in today's global market. The country's position on the platform has largely been augmented by the consistent growth in GDP over the past 27 years. The Australian success story is a culmination of several efficient budgetary and monetary policies which guide economic activities in the country. Given the applicability and appropriateness of policies set in the region, it is likely that Australia's economy will continue to grow in the next one year. Both the gross domestic product and the per capita income are likely to experience significant growth in percentage.
Monetary Policies
The success of Australia on the economic front is a culmination of the shift in monetary policies. The beginning of the economy's success was realized after the floating of the currency exchange rates in the late 20th century ("How Australia's Monetary Policy Changed Since Moving to Floating Exchange Rates"). The monetary policies shifted from concentration on the external economic environment to a locally-inspired financial relationship with investors. The control of the internal environment provided the state institutions with increased influence over the success of the economic activities. Such an approach will account for the increase in GDP within the next one year. In an increasingly volatile market, states should be committed to the regulation of internal factors rather than the control of external financial relationships (Beggs). As a shifting approach to the external environment, the internally-inclined monetary policy in Australia encourages investment. The mitigated likelihood of there being less uncertainty regarding business costs encourages both internal and external investors to partake in economic activities (Rhyne). From the venture, the state will be able to realize increased revenue in the form of taxes and improved per capita income as a result of increased employment opportunities.
Budgetary Policies
The current budgetary policy in Australia will play an indispensable role in promoting the country's gross domestic product. The increase in taxes levied on businesses will provide the government with the revenue needed to oversee increased investments in the country. Given the policy, Majumdar argues that the country will continue to experience a recession-free growth in GDP up to 2020. The allusion reflects the appropriateness of the tax measures highlighted in the budget. Equally, increase in the Medicare and health taxes on high income earners will facilitate the growth in GDP as the government will be able to secure more revenue in overseeing investment initiatives. The real estate industry, which is a major driver of the economy, will also witness an improvement given the increase in tax discount rates that were reflected in the 2017 budget (Jabour). Investors who choose to commit their finances to affordable housing will benefit greatly from the tax discount (Jabour). Some of budget-affiliated factors that may negate the economic progress include an increase in bank lending rates as a result of higher state taxation.
Environmental Policies
The cost borne by the environment will greatly influence economic growth in Australia. The stance taken by the country to limit the per capita emissions may lead to a negation of the GDP (Salleh). Nonetheless, shifting the production processes may continue to encourage economic development in the next one year.
Conclusion
Australia is likely to witness an increase in GDP and per capita income within the next one year. The growth will be precipitated by the improvement in the monetary, budgetary, and environmental policies. While some stagnation may be experienced in environmentally-inclined industries, an appropriate balance between the policies may lead to an increased percentage in the economy.
Works Cited
Beggs, Mike. “The Evolution of Australian Monetary Policy in the 1950s.” Australian Economic History Review, 2015.
“How Australia’s Monetary Policy Changed Since Moving to Floating Exchange Rates.” American Express, 2018, https://www.americanexpress.com/au/content/foreign-exchange/articles/australia-monetary-policy-to-manage-exchange-rates/. Accessed August 20, 2018.
Jabour, Bridie. “Budget 2017 Summary: The Winners and Losers at a Glance.” The Guardian, 2017, https://www.theguardian.com/australia-news/2017/may/09/australia-federal-budget-2017-summary-at-a-glance-winners-and-losers. Accessed August 20, 2018.
Majumdar, Rumki. “Australia: Steady and Good Growth Despite Risks.” Deloitte Insights, 2018, https://www2.deloitte.com/insights/us/en/economy/asia-pacific/australia-economic-outlook.html. Accessed August 20, 2018.
Rhyne, Brendan. “Quarterly Economic Outlook: Global and Australian Forecasts – April 2018.” KPMG, 2018, https://home.kpmg.com/au/en/home/insights/2018/04/economic-outlook-global-australia-april-2018.html. Accessed August 20, 2018.
Salleh, Anna. “Economic Growth in Australia Does not Have to Cost the Earth, CSIRO Report Finds.” ABC, 2015, http://www.abc.net.au/news/science/2015-11-05/green-economy-does-not-have-to-cost-earth-csiro/6912266. Accessed August 20, 2018.
