Australia’s Economic Business Growth

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The Australian Mining Boom

There is no doubt that Australia’s economy has been slowing significantly since the mining boom that ended in 2011. During this economic peak, which represents one of the largest shocks to the national economy, the currency reached above parity (1.10) for the first time in history, terms of trade reached a memorable all time high of 118.5 and the mining industry itself comprised of around 8% of GDP. This had a dramatic affect on all Australians on a retail level. By 2013, real GDP per capita had amplified; household disposable income increased by 13% and real wages grew around 6%. The economic outlook and future were looking positive and Australian living standards were predicted to have increased significantly as a result. However like all economic fluctuations and changes in the business cycle, they are temporary. Thus when the mining boom ended in 2011 due to slowdown in Chinese demand for Australian commodities, this had and continues to have an immense affect on Australia’s economy and utility levels.

The aftermath of the commodity boom

Once the mining boom ended, due to the significant appreciation of the Australian Dollar, the Reserve Bank of Australia was attempting to intervene, utilizing monetary system methods and instruments to try and bring the Australian dollar down. As a result of the stubbornly high dollar, tourism and hospitality industries were suffering. Unemployment was increasing while citizens were still struggling to adapt to a slower economy. The Reserve Bank further adopted a highly expansionary monetary policy stance, dropping the cash rate to the lowest it has been for more than half a century at around 2.5%

The current economic situation in Australia

Since then, four years later, the Australian economy has started to gather momentum. With both consumer and business confidence increasing, the AUD falling to around 75 cents and the cash rates further dropping 50 basis points to 2%. Businesses are starting to attract international markets and gaining a competitive edge, allowing for increased revenue and profit ability, a rise in the derived demand of labour (unemployment at 6%,) and a slow revival from an economic contraction.

Australian housing bubble crisis

Although the restoration of the Australian economy was economically and socially difficult, it was a critical step to ensuring that Australian living standards didn’t plunge any further. This is largely due to the concerning housing price trends that have led to have additional negative impact and apprehension to Australian living standards. The property prices were a direct result of the momentous immigration to Australia, specifically Chinese immigration. Thus the pick up in employment and economic stimulation give Australian citizens hope that they can to some extent, resemble the persistent high property prices.

Indeed, if readers in America are planning to go away for the Christmas break, Australia might be a good destination for you. Whether it’s a cheap getaway to the Gold Coast, paired with low airport transfers Gold Coast and luxurious accommodation, Australia’s iconic beaches and our friendly relaxed culture promises to be a great experience and vacation. Accompanied by your recent Beige book publication, a trip to Australia indicates as if it will only become increasingly affordable.

Australia’s economic growth is largely dependent not only on the mining industry but in tourism as well. Australian tourism has improved a lot mainly because of transportation to and from each state has been greatly developed. This would include airport transfers Gold Coast, Sydney and even Melbourne where a lot of tourists go to visit.