Australian EconomicsExecutive SummaryThis paper will argue that no single set of trends provide an accurate outlook for the Australian economy. Looking at commodity trends on their own gives an idea of past performance but does not provide an accurate outlook for the Australian economy and its ability to achieve GDP growth in excess of 3% over the next two years.
The best indicator of the outlook for the Australian economy is a combination of indices. No single index can accurately reflect past performance and therefore no single index is the best indicator for the Australian economy and its ability to achieve GDP growth in excess of 3%. Australias terms of trade and the share market show that though there are some trends reflected in commodity prices there are other factors at play. Current GDP growth rate is at 3.5% and the expectation for the 2013 and 2014 is to slow down to 3%.
Economic indicators are based on the assumption that sequences repeat themselves and that certain combinations of economic variables underlie these sequences. If leading economic indicators perform well they are able to forecast the economic outlook. (Brischetto & Voss: 2000) Leading indicators, indicators that rise before Gross Domestic Product (GDP) rises and fall before GDP falls, facilitate the ability to predict likely patterns in the Australian economy. However, leading indices are composite and do not look solely at one factor. Such example in the Westpac-Melbourne Institute Leading Index which examines movements in leading and coincidental indicators of economic activity in Australia, with the belief they will give a “more representative picture than any single variable.” (Melbourne Institute: 2012)
The Economic Indicators Standard (EIC) is a mathematical model that has been widely used since the 1880s and will be used to explain, for example, how long the stock market is expected to recover in a single year before it is likely to lose its entire value, and why inflationary expectations should be low if they are not at a certain level. The EIC will show us the expected recovery rates and return rates of a given economy over the short term and the relationship between long term and measured recovery rates and the expected return rates and returns. This allows us to compare a central (and thus underlying) system to a system that can respond very quickly to changes in the underlying global economy. The EIC has been used extensively (including in a number of the Economic Indicators Standard models) in the past, as the benchmark of Australian growth, as a measure to predict the economic outlook of a given sector, and by any and all other central authorities.
Australia. As a centralised and private sector central, with the public sector receiving the bulk of the cost, of public debt and other costs of providing economic services, this centralised and private sector would provide a much-needed boost to the economic well-being of Australia by providing for a number of services essential for economic growth (from services such as hospitals, housing and community centres to education, health and social services such as a health bar or a child’s playground in schools, for example).
The Federal Budget (EIR)’s deficit of R.15 billion in 2014- 2015 means that $7.1 billion (6% of the national revenue) will be spent in the next four years on allocating this budget deficit – this is a great opportunity for Australia to address budget deficits and to improve policy.
Australia’s share of private debt (PAS) for 2016-17 could fall from 35.5% of the GDP to 24.6%, under the R.5 trillion budget request. This would lead to a loss in the social, medical and energy budgets of 12.1 billion less than what it would cost to maintain public services such as healthcare or education at peak times of need. In addition, the government’s policy needs will likely be very different under the current R.5 tranche of federal budget, which would have an even smaller impact on Australia’s overall funding than it would have under existing R.5 tranche.
Australia’s current government was forced to make significant reforms by the new Prime Minister over its relationship to financial markets in 2010, which is described above in full. Both the new Federal budget as part of its re-introduction into the Commonwealth has been controversial. Government decisions have been put by the Treasurer and senior management from the central government through the Central Banking Department to include monetary policy in the Budget in 2010, whereas they have gone largely ignored in the current federal government. Both the public and the central governments have been unwilling to accept this new fiscal policy was in fact required to contain an increased risk of financial default. The impact is that Australia now faces a budget surplus of R.30 billion under the federal budget request. The only evidence for Australia’s financial sustainability rests with the economic, social and energy needs of the people of Australia, and the policy needed for a continued recovery to continue as long as the federal budget remains in current