Three Factors Of Gdp

DISCUSSION

GDP is usually used as a key parameter to account for a country’s economic growth. It is fundamentally the broadest quantitative measure of a country’s economic activity, it is the monetary value of all goods and services produced within a nation’s geographic borders over a specific period of time. GDP is a measure where a country stands economically with reference to other nations and its economic condition. Three approaches can be used to identify the GDP;

• Income approach,

• Expenditure approach and

• Production approach

These approaches help in understanding that how much the economy is growing or how rapidly it is deteriorating. The basic factors that affect the GDP are discussed as follows:

PERSONAL CONSUMPTION

Personal

The difference of total exports and total imports may affect the economy in both positively and negatively. Where exports are less than imports, it interprets that the economy has trade deficit where as if exports are greater than the total imports by an economy, it contributes to the total economic growth of the country.

SUMMARY OF GROWTH RATE OF AUSTRALIA

The chart presents the five year economic growth of Australian economy. The figures shows outstanding economic performance in all the economic sectors in Australia. The Estimated GDP for the fiscal year 2015 was $1339.5 Billion.

At the start of fiscal year 2015, the GDP growth rate of Australian economy was 2.8 which elevated to 3.3 by July of the fiscal year 2016. The major developmental and technological advancement in the fiscal year 2012 added high value to the Australian economy. Free trade agreements with different countries is helping the Australian economy to hold its ground and shows a continuous growth rate in all the economic sectors in Australia.

FACTORS AFFECTING THE GROWTH RATE OF AUSTRALIA

There are two types of factors that affect the growth rate of the economy of Australia. They

Australia is enriched with natural resources that includes Minerals, Copper, Natural gases and other energy sources. Economies grow under the umbrella of different market variables. The abundance of easy raw material, availability of labor and government policies aid to the speedily growth of economies. Australian government has reduced the freight charges and tax rates on imports and facilitated different industrial sectors to expand and grow exponentially. The supply chain management is effectively sustained by the industrial sectors with the help of government’s monetary and fiscal policies. Australian market is a demanding market that allows the investors to take high interest in making material investments in different consumer