Statistics to Describe Australia’s Current Business Cycle Position – Flashcards
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Unlock answersquestion
What phase of the business cycle is the Australian economy in at the moment?
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Trough/Start of Upswing
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Evidence for Start of an upswing
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Increasing GDP, Steady Unemployment, stable confidence, steady interest rates
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How is Australia's past GDP data reflect the start of an upswing?
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Australia's annual GDP growth rate has start to increase after periods of declining economic growth between December 2013- June 2015, from 2.7% to 2.2% economic growth. Australia's current GDP - 2.3% Increasing slightly (September 2015)
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How is Australia's past unemployment data reflect the start of an upswing?
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Australia's unemployment is currently steady after a decline from the January 2015 unemployment rate of 6.3%. The current unemployment rate - 5.8% (Steady)
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How is inflation data an indicator of a start of an upswing?
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The CPI in Australia has been increasing since March 2015 - pressure on prices might be as a result of increases in economic activity. Current inflation rate - 1.7% (Increasing)
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How is confidence an indicator of an upswing?
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NAB Business confidence survey - slightly decreased to 3 in the December Q4. Businesses had high expectations for the future with expectations at 24, higher than the confidence figures of around 20 in late 2007 before the GFC.
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How is interest rates an indicator of the start an upswing?
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Interest rates remained steady suggesting that economic conditions are steady and are not deteriorating. A decline in the interest rates would have suggested that the economy is still contracting or still in a trough. Current interest rates - 2% (steady)
