Australi The Economic Heart Of Australia - 794 Words

Delving into the economic heart of Australia for an understanding its economy. Australia is located in a region known as Oceania (a huge body of water) that houses the island called Australia. According to John Pearson, author of the 2015 report â€Å"Our World,† Australians Population estimates around 22,750 million people. Australian population spreads across this mass of land that spans 2.96 million square miles with almost half of the land climate is dry desert. Surprisingly with such dry climate, and mostly desert the crops are plentiful (Andrew C. Chang) (Australian Bureau of Statistics) (Pearson). Although the dry climate and flat lands of Australia allow few opportunities for farming, farmers maintain a steady food supply. On the†¦show more content†¦For example, China, at that time in 2005 demanded more iron ore for producing steel as its economy began to grow, in turn, adding to increasing Australian GDP to 3.2% from 2001 GDP of 1.9%. Around 2013 Australians demand for iron ore decreased and commodity prices began to dwindle. In addition, 7,675 refugees increased causing more constraints on the economy plus prices on commodity export dropped. These factors weight heavy on Australian finances (Gartrell Adam) (The Economist Newspaper). Guiding the nations’ monetary systems rests in the hands of the Central Bank of Australia, known as, The Reserve Bank of Australia (RBA). The Reserve Bank of Australia serves to oversee and stabilize the countries’ economic prosperity, welfare of its citizen, employment, and finances. Australian has what is call a Floating exchange rate, which means prices may change from day to day as in the case of value. For instance, the less demands on trade from China forces Australians to lower the exchange rates. In exchange for lowering the rates, along with government expenditures helps stabilize Australian inflation rate (2.7% GDP), the welfare of its citizen (7.3% GDP), regulate unemployment (GDP 6.2% down 2014) and the finances (5.3 % GDP) of the country (Australian Bureau of Statistics) (Lien). The table