Data are the artifacts covering measures of economic growth, such as gross domestic product (GAP) and gross national income (IN). They also have pointers representing elements known to be appropriate to economic growth, such as capital stock, employment, investment, savings, consumption, government spending, imports, and exports (The World Bank, 2014). GAP is one of the primary pointers to evaluate the economy of a country. GAP is the market value of goods and services produced by property and labor in a country in a given period of time regardless of nationality (The statistics Portal, 2014).
Normally, it is calculated on an annual basis and includes all public and private consumption, government expenditure, investments, and net exports. The Gross Domestic Product is primary pointers in measuring a country’s standard of living. In addition, Real GAP is a key indicator to measure economic growth since it is a measurement that takes prices changes into consideration (The statistics Portal, 2014). Real shows the changes in the value of the national currency, known as inflation and deflation, which allows for the evaluation of a country’s annual GAP over a longer period of time (I. Years or decades). Glance on Economic Growth & comparison between Australia, USA & India AUSTRALIA The Australian economy has experienced continuous growth and features low unemployment, contained inflation, very less public debt, and a strong and stable financial system. Until 2012, Australia and experienced more than 20 years to continued economic growth, averaging 3. 5% year. Call for resources and energy from China and other Asian countries has rapidly grown, forming a good space for investments and growth in product exports.
As Australian dollar is high and has hurt mainly manufacturing sector, on the other hand services sector covered largely in Australian economy, roughly about 70% of GAP and 75% of Jobs. Agriculture contributes 4% of GAP and Industry has a share of 27. 3% in GAP (The Statistics Portal Australia, 2014). Australia was one of the reasonably unaffected countries by the global financial crisis where the banking system was strength to keep inflation under control. Similarly, Australia is making a remarkable rise foreign trade with rising global product prices.
Strength of Australia can be taken as an exporter of natural resources (mine), energy (coal), and food (agriculture). Australia’s rich and diverse natural resources fascinate global investment in high level. Major investments are in coal, iron, copper, gold, natural gas, uranium, and renewable energy sources. Continuous and major investments, approve. IIS$40 billion Gorgon Liquid Natural Gas project, meaningfully expand this sector. Australia considered to be an open market with fewer restrictions on trade of goods and services has enormously increased productivity, enthused growth, has made the economy significantly flexible and dynamic.
Australia has mutual free trade treaties with Chile, Malaysia, New Zealand, Singapore, Thailand, and US. It also has very warm relation with commonwealth countries and exchanging agreements with China, India, Indonesia, Japan, and the Republic of Korea, which are near and contributing countries in Economic growth. Australia’s economy is well developed and is currently ranked 13th in a GAP-based ranking of the world’s largest economies according to (Investigated, 2014). The International Monetary Fund estimates Australia’s 2010 GAP at 1. 22 trillion U. S. Dollars.
Australia’s economy has been rising progressively at around 3%/annum for the last two decades. Australia has managed to maintain a positive GAP growth rate during the global financial recess, where almost the entire world’s biggest economies fallen into financial crises. However Australia’s unemployment rate was lightly increased during that period, still being stable at a reasonable rate of 5. 2% in 2010 in a comparison to 9. 6% of United States (Monasteries, 2014). Australia slowly accelerates the pace of its economic growth in the coming years. Survey shows that the GAP of Australia grew by 2. % in 2013 which consistent with last year’s growth rate and is forefront in developed economies. Gestures, E. 2014) Record low interest rates finally make impacts on Australia’s economy. Because of low interest, it boosted house prices and household wealth, and stimulate the recovery of housing construction and consumer spending. (Heath, M. 2014) The fast population growth enhanced the speed of GAP (more input of labors means more outputs). However, there is no evidence illustrate that it improves the per capita GAP of Australia. In fact, since 2007, there is little growth in per capita GAP.
In other words, although it brings economic growth, the existing national welfare has not been improved. Cowmen, T. 2008) USA USA being a largest and economically powerful country in the world is technically boosted, market based economy, large business firms where individually and privately owned where state or federal government are the buyers of this private market. Its per capita GAP is $49800 according to Monasteries (2014). More flexible market than other European nations and Japan, for expansion, investments, and development of new product are its strength.
Major strength of USA are technology, computers in Medical science, aerospace, service business, military technology has hearken but still they rule the top most position with its gradual and steady growth. However the pay rise is always an issue in USA. Basic household income, house prices, oil prices and dividends are increased faster than expected, as a result closing down of business hiked between 2006 and 2008. The closure of business and banks started an economic crisis as falling home prices, tight credit, investment failures which further pushed down into recession by 2008.
Along with GAP was unbelievably the deepest low and stayed for longest. US congress planned to form a trust with 700 Billion fund (TARP) to buy equity in US banks, and industries which gave quick return y 2011. Obama Government with previous body, agreed to add $787 billion for economy recovery, creating Jobs over 10 years (Monasteries, 2014). After the military action called off from Iraq and Afghanistan and around the world, added some value in economic growth. With visionary strategy of Federal Reserve board aided good achievement which, as a result showed a positive effect in unemployment decrease.
Though some major issues like benefits for lower-income families, insufficient investment in weakening infrastructure, fast rising medical and pension sots, energy crisis, and budget shortages – including significant budget shortages for state governments has to be addressed to take a leap in economic growth in future. INDIA India is considered to be new open and fast growing market in the world after China. Appropriation in state owned enterprises, private investments in major industries, liberal measures in industry and good control over foreign trade starts two decades before accelerated the country’s economic growth.
Diversity in economy incorporates traditional farming and agriculture, handicrafts, modern industries (mainly IT and electrification), where agriculture has highest work force however services is the major source of economic growth. India has made its English speaking well educated population as strength forming major source of Business outsourcing in IT (software) and Accounting (The Statistics Portal India, 2014). India roost these two major industries by 2010, however slowing down were in 2011 as government decreased its investments due to global crisis.
This leaded to worsening in economy but from 2012, Indian government formed major strategy focusing on major population which is young, well-educated and visionary. Taking this as an advantage direct investments plans, global business integration, low dependency ratio, high savings played a vital role to accelerate the economy to new direction. India being an autocratic system in past now started working in root level addressing some prominent issues and challenges like, corruption, violence, poverty, discrimination against girls, family health are still in progress.
Furthermore if higher enforcement in transport, higher education, infrastructure development, internal migration, non-agricultural based workforce is addressed the future has very wide range of development. Comparisons to the economic gar NSA to Australia, U. S. A, and India Australia’s Economic Growth Australia was comparatively least affected by the 2008 Recession as the inflation is under control and the banking system has remained strong (Index Mound 2014). It reached 2. 49 and 1. 37 per cent growth rates in terms of real GAP in 2008 and 2009 respectively, comparing to USA where its growth rate plummeted down to negative values..
The contributions of Australia’s economic growth are profusion of raw materials, the Australian mining success, high commodity prices and large exports to evildoing countries like China (The statistics Portal, 2014). ‘Down Under’ is an open market with fewer restrictions on imports of goods and services. This has increased stimulated growth, productivity, and made the economy more dynamic and flexible. The country plays an important role in the World Trade Organization, the 620, APEX, and other trade forums The National Accounts and the Bureau of Statistics show Australia’s economy grew by 3. 5 per cent over the current year to March.
Craig James, Comes chief economist, pointed out that the country is it its 23rd consecutive year f economic growth this year, that the Australian economy is doing very well. The economy grows above its normal pace because of interest rates are at historic lows, inflation is under control, exports, productivity is strong and home constructions and, 2014). This line graph shows the growth of GAP in Australia from 1999 to 2011. This graph shows the growth rate of Australia’s real GAP from 2003 to 2013. Source: wainscots. Com GAP: $1. 5 trillion on 2013) United States of America’s Economic Growth USA has the world’s largest single economy.
It has most diversified and advanced economies in the world.. It has a stable GAP growth rate and high levels of capital investment. Finance, insurance, real estate, rental, leasing, health care, social assistance, professional, business and educational services account for more than 40% of GAP. Retail and wholesale trade have a share of 12%. Government related services contribute 13% of GAP. Utilities, transportation and warehousing and information account for 10% of the GAP. Manufacturing, mining, and construction constitute 17% and Agriculture accounts for only 1. % of the GAP, yet due to use of advance technologies, the United States is a net exporter of food (Trading Economics, 014). United States faced worst recession in 2008 wherein GAP fell by 5% in a year. It was caused by the supreme mortgage crisis, derivatives market and declining dollar value (Boundless, 2014). In 2012, the real GAP increased by 2. 8%. The slowing down to real G 1 retracted declines in private inventory investment and in government expenditure and a decline in exports that were partly offset by the decline of imports and hastening in non-residential fixed investments (The Statistics portal, 2014).
This graph shows the Growth of GAP from 2006 to 2014. In 2009, the GAP was corded as negative. Source: wry. Satanist. Com GAP : $16. 6 trillion on 2013) and $17. 23 trillion ( in 2014) Indian’s Economic Growth Even with the world-wide recession in 2008 and 2009, India still succeeded to record remarkable GAP growth rates, especially when most of the countries noted negative growth. Indian’s workforce is expanding in the industry and services sectors and the agriculture sector in India is still a global power. According to Indian’s Planning Commission, rapid economic growth has resulted in decline in the poverty rate from 37. % in 2005 to 29. 8% in 2010. Per capita income doubled during these five years. Internationally, India has also become an important actor. Forming the ‘l’ in the BRICKS group of nations, India plays a very important part in the leadership of the emerging markets and developing nations. In 2010, a growth of 8% was seen in Indian economy; however, it started declining in 2011 because of waning of investment caused by investor pessimism about the economic reforms of the government and global situation (Index mound, 2014).
In late 2012, Indian Government announced reforms and measures to reverse Indian’s slowdown, which included higher levels of erect foreign investment in the economy. The outlook for Indian’s growth is positive because of young population and comparative low dependency ratio, increasing integration into the global economy, and healthy savings and investment rates. Indian’s growth strategy actually holds lessons for developing nations. Recent years have witnessed a shift of economic power and attention to strengthening economies of BRICE countries.
The growth rate of GAP in these countries is larger than in traditionally strong economies like United States of America. This line graph shows the growth of GAP from 1999 to 2011. This graph shows the Real growth rate from 2004 to 2014. It is evident that it was growing till 2007, then experienced a decline in 2008-09 and again rose in 2010. After 2012, because of the reforms and measures taken by government, the economy is now growing. Source: wry. Satanist. Com GAP : $1. 7 trillion( 2013) Effects of Economic Growth on the Society in Australia, USA and India Economic titillation are oaten retired as ups & down in economy, these titillation tallow broad paths, each business cycles display all the phases of cycle, its characteristic differ from one to another cycle. Benefits of the economic growth: Higher real income per capita & living standard can be realized due to increase in productivity & resource used. Higher real income raises the purchasing power & thus living standard through improvement in material welfare.
Higher level of the economic growth encourages higher level of saving. Higher level of economic growths tend in leading to increase level of productivity & technological progresses since resource are been used efficiently as producer cut costs & innovate with rising demands for goods & services. Higher rate economic growth which result in employment creations & falling unemployment level also lead to higher income for previously unemployed. The Growth can create many opportunities for the underemployed worker. Economic growth, that generate higher GAP, leads to increase in taxation revenues for government.
Government use taxation revenues to provide economic & social infrastructure & to fund social security systems for provision of the welfare payment. Higher level of the economic growth may contribute new business investments. New investments opportunities in the resource projects & capital equipment may results from the higher sustain economic growth. It involves increase in real outputs, which may export. Export incomes can be used in financing imports of the capital & consumer item. The gain from trades includes higher living standard.
A nation that high rate of the economic growth more likely as to able in reducing extent of the absolute poverty’s. Economic growth permit improvements in the social welfare including: Benefit to personal lifestyle from the greater real incomes. Reduction in the class hostility. More leisure time workers can trade off as for the extra work in income rise. It enables Australian to use the leisure time, & develop new industries. United States of America United States has the most technologically and diversified advanced economy in today’s world.
Insurance, Finance, rental, real estate, leasing, social assistance, health care, professional, educational & business services accounts for much more than 40% of GAP. Wholesale and Retail trade create another 12% of wealth. The governments related service fuel 13% of GAP. Transportation,utilities and warehousing for 10% of GAP. Mining, Manufacturing and construction constitutes% of the outputs. (Gordon, 1998) Agriculture account for 1. 5% of GAP, due to the use of the advance technologies, United States is net exporters of food. United State GAP minimizes / shrank at annual rate 1. % in first quarter(2014), According to second estimate by commerce Department In these three years it was the worst performance estimated 0. 1%. This happened due to sharp fall in the inventory investment & biggest trade deficit. Therefore downturn in percent changes in GAP primarily is reflected downturn in the exports, large decrease in the inventory investment & downturn in non residential fixed investments in the state & local governments spending were partly offset and upturn in the spending of federal government. (Gordon, 1998) Society is divided into 3 parts. 1 .
The Wealthy – Mostly rely on the domestic help as for shopping grocery, buy all kind of staples & prefer in buying fresh vegetables & food locally from small grocers & vendors, & other product from the general merchant. 2. The Poor – Purchase basic staples on first day every month & other staple they can afford daily & later purchase more merchandises on the credit. Single use package sales are frequent. 3. The Middleman’s – Divide purchasing habit and majority shop on own at their favorite coal shops where concern about quality of lower priced product were critical.
The concern of increasing gap between the rich & the poor is shown in shopping habits. The outlooks for food retails landscape is also increasing daily and it restrict people of the lower classes to afford & accept changes brought through globalization. There are positive & negative aspect to India economic & trade policies in global markets. The gap in between the riches & the poorer in nation is been seen to expand significantly since the new economic initiative open new global market, specifically in food retails industry.
So At same time, the political changes had hampered sum international corporate effort within domestic sphere which traditionally protected from the foreign interest. India is also seen to realize its potential as in global economy and in term of growth, and there is some gap in between reality and potential. Many people still within & out of Indian government predicts that rates of the economic & financial growth will improve in the future & eventually rises number of individual who can also be considered as the potentials in helping the growth of food retails landscapes of India.
Conclusion Australia, USA and India have their own strengths that help them grow economically. Sectors like services, agriculture, finance and manufacturing give a big impact on the growth of a country’s economy. But in a business cycle where there is a financial crisis or recession, there are countries like Australia and India that displays their stability and are less impacted with the crisis. And with the ups and downs of the economy, the people in the society are the one who are greatly affected.