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INTERNATIONAL

FINANCIAL
MANAGEMENT

Submitted to: Submitted by:


Prof. Puja Agarwal Manisha Sharma 05

Isha Sachdeva 03

Surbhi Sharma 20
KEY ECONOMIC INDICATORS OF AUSTRALIA

Australia GDP Growth Rate

The Gross Domestic Product (GDP) in Australia expanded 2.70 percent in the fourth
quarter of 2010 over the same quarter, previous year. Unlike the commonly used
quarterly GDP growth rate the annual GDP growth rate takes into account a full year
of economic activity, thus avoiding the need to make any type of seasonal
adjustment. From 1960 until 2010, Australia's average annual GDP Growth was 3.54
percent reaching an historical high of 9.00 percent in June of 1964 and a record low
of -3.40 percent in June of 1983
Year Mar Jun Sep Dec

2010 2.70 3.30 2.70 2.70

2009 0.80 0.90 0.90 2.80

2008 3.30 2.70 2.50 1.00

Australia Imports

Australia imports were worth 21764 Million AUD in January of 2011. Australia is a
major importer of machinery and transport equipment, computers and office
machines and telecommunication lasers. Main import partners are European Union,
China, United States, Japan and Singapore.

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2011 21764.
0

20948. 21377. 22032. 22131. 22917. 23062. 23604. 22216. 22257. 21821. 22400. 22624.
2010
0 0 0 0 0 0 0 0 0 0 0 0

22914. 22273. 21908. 20915. 20225. 20338. 20718. 19938. 21342. 21111. 20613. 21662.
2009
0 0 0 0 0 0 0 0 0 0 0 0

22026. 22272. 22441. 22572. 23928. 23491. 23991. 23811. 25146. 24990. 25439. 24527.
2008
0 0 0 0 0 0 0 0 0 0 0 0

An import is any good or service brought into one country from another country in a
legitimate fashion, typically for use in trade. Import goods or services are provided
to domestic consumers by foreign producers. An import in the receiving country is
an export to the sending country. Imports, along with exports, form the basis of
international trade. Import of goods normally requires involvement of the Customs
authorities in both the country of import and the country of export and are often
subject to import quotas, tariffs and trade agreements. when the "imports" are the set
of goods and services imported, "Imports" also means the economic value of all
goods and services that are imported. The macroeconomic variable I usually stands
for the value of these imports over a given period of time, usually one year.

Australia Exports

Australia exports were worth 23639 Million AUD in January of 2011. Rich in
natural resources, Australia is a major exporter of agricultural products, particularly
wheat and wool, minerals such as iron-ore and gold, and energy in the form of
liquefied natural gas and coal. The agricultural and mining sectors account for 57%
of the nation's exports. Australia's largest export markets are Japan, China, European
Union, South Korea and United States.

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

23639.
2011
0

20597. 20385. 20824. 23418. 24712. 26527. 24974. 24784. 24304. 24443. 24411. 24642.
2010
0 0 0 0 0 0 0 0 0 0 0 0

23412. 24215. 23839. 21096. 19774. 20098. 19379. 19216. 20243. 19572. 19229. 20143.
2009
0 0 0 0 0 0 0 0 0 0 0 0

19460. 18601. 19537. 21554. 22095. 23005. 22890. 24518. 25759. 27734. 26392. 24506.
2008
0 0 0 0 0 0 0 0 0 0 0 0

Export goods or services are provided to foreign consumers by domestic producers.


It is a good that is sent to another country for sale. Export of commercial quantities
of goods normally requires involvement of the customs authorities in both the
country of export and the country of import. The advent of small trades over the
internet such as through Amazon and e-Bay have largely bypassed the involvement
of Customs in many countries due to the low individual values of these trades.
Nonetheless, these small exports are still subject to legal restrictions applied by the
country of export.

Australia Inflation Rate

The inflation rate in Australia was last reported at 2.7 percent in the fourth quarter of
2010. From 1937 until 2010, the average inflation rate in Australia was 6.02 percent
reaching an historical high of 17.60 percent in March of 1975 and a record low of
-0.30 percent in September of 1997. Inflation rate refers to a general rise in prices
measured against a standard level of purchasing power. The most well known
measures of Inflation are the CPI which measures consumer prices, and the GDP
deflator, which measures inflation in the whole of the domestic economy.
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2010 2.90 3.10 2.80 2.70

2009 2.50 1.50 1.30 2.10

2008 4.20 4.50 5.00 3.70

The table above displays the monthly average.

AUSTRALIAN INFLATION RISES 2.7% IN 2010


Published: 1/25/2011 11:01:18 AM By: TradingEconomics.com, Australian
Bureau of Statistics

The ABS Consumer Price Index rose 2.7% through the year to December quarter
2010, compared with a rise of 2.8% through the year to September quarter 2010.

The ABS Consumer Price Index rose 0.4% in the December quarter 2010, compared
with a rise of 0.7% in the September quarter 2010.

The most significant price rises this quarter were for fruit (+15.5%), vegetables
(+11.4%), domestic holiday travel and accommodation (+3.8%) and automotive fuel
(+2.1%). The most significant offsetting price falls were in pharmaceuticals (–6.2%),
deposit and loan facilities (–1.3%), motor vehicles (–1.0%), audio, visual and
computing equipment (–4.8%) and motor vehicle repair (–1.9%).

Australia Government Budget


Australia reported a government budget deficit equivalent to 2.34 percent of the
Gross Domestic Product (GDP) in 2009. Government Budget is an itemized
accounting of the payments received by government (taxes and other fees) and the
payments made by government (purchases and transfer payments). A budget deficit
occurs when an government spends more money than it takes in. The opposite of a
budget deficit is a budget surplus. This page includes: Australia Government Budget
chart, historical data and news.

Year Mar Jun Sep Dec

2009 -2.34

2008 1.81

GOVERNMENT BUDGET
A government budget is a legal document that is often passed by the legislature, and
approved by the chief executive-or president. For example, only certain types of
revenue may be imposed and collected. Property tax is frequently the basis for
municipal and county revenues, while sales tax and/or income tax are the basis for
state revenues, and income tax and corporate tax are the basis for national revenues.
The two basic elements of any budget are the revenues and expenses. In the case of
the government, revenues are derived primarily from taxes. Government expenses
include spending on current goods and services, which economists call government
consumption; government investment expenditures such as infrastructure investment
or research expenditure; and transfer payments like unemployment or retirement
benefits. Budgets have an economic, political and technical basis. Unlike a pure
economic budget, they are not entirely designed to allocate scarce resources for the
best economic use. They also have a political basis wherein different interests push
and pull in an attempt to obtain benefits and avoid burdens. The technical element is
the forecast of the likely levels of revenues and expenses.

Australia Unemployment Rate

The unemployment rate in Australia was last reported at 5.00 percent in February of
2011. From 1978 until 2010, Australia's Unemployment Rate averaged 7.11 percent
reaching an historical high of 10.90 percent in December of 1992 and a record low
of 4.00 percent in February of 2008. The labour force is defined as the number of
people employed plus the number unemployed but seeking work. The nonlabour
force includes those who are not looking for work, those who are institutionalised
and those serving in the military. This page includes: Australia Unemployment Rate
chart, historical data and news.
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2011 5.00 5.00

2010 5.30 5.30 5.40 5.40 5.20 5.10 5.30 5.10 5.10 5.40 5.20 5.00

2009 4.90 5.40 5.70 5.40 5.80 5.80 5.70 5.80 5.70 5.80 5.60 5.50

2008 4.20 4.00 4.10 4.20 4.30 4.20 4.30 4.10 4.30 4.40 4.50 4.60

• The table above displays the monthly average.

AUSTRALIA'S UNEMPLOYMENT RATE UNCHANGED IN FEBRUARY


Published: 3/10/2011 10:56:49 AM By: TradingEconomics.com, Australian
Bureau of Statistics
The Australian unemployment rate stood unchanged at 5.0 per cent seasonally
adjusted in February, as announced by the Australian Bureau of Statistics (ABS) on
March 10.

The ABS reported the number of people employed decreased by 10,100 to 11.413
million in February. The decrease in employment was driven by a decrease in part-
time employment, down 57,700 people to 3.344 million that was partially offset by
an increase in full-time employment, up 47,600 people to 8.068 million.

The number of people unemployed decreased by 500 people to 604,800 in February.


The ABS monthly aggregate hours worked series showed an increase in February,
up 17.9 million hours to 1,602.0 million hours. The ABS reported labour force
participation in February of 65.7 per cent, a decrease of 0.1 percentage points from
January.