Unemployment And Inflation Rates In Australia, Canada, And India: An Overview Of Their Economic Conditions

Discuss Australia’s unemployment rate and inflation rates providing an overview of Australia’s economic condition. Discuss country 1’s (from the list 1) unemployment rate and inflation rates providing an overview of country 1’s economic condition.Discuss country 2’s (from the list 2) unemployment rate and inflation rates providing an overview of country 2’s economic condition Compare economic unemployment rate and inflation rates of county 1 and country 2 with that of Australia. Identify similar trends and/or differenced in unemployment rate and inflation rates during the time period.Discuss relevant reasons for the trends you have identified due to global, regional and/or country specific issues/events. 

Economic Outlook of Australia

Undoubtedly,economic conditions vary in each and every country.However,some macroeconomic variablesmay be affected  by global,regional or national events.Australia ,Canada and India have recorded different rates in unemployment and inflation over the years for some reason.A comparison of the economic conditions and performance of these three countries is compared and the reason for the disparities pointed out.

     Currently, the Australian economy is crippled with low wage growth, low labor prospects and shelter investments. However, there’s a rise in commodity prices which has boosted balance of trade. Generally ,Australia s Gross Domestic Product has reduced over the years 2011 to 2015 at US$66838bn to 51,359 bn respectively .Also, its rate of economic growth has significantly reduced from 2.7per cent in 2011 to 2. Percent in 2015(Focus Economics,2017)Further, the levels of investments have gone down from 6.9% in 2011 to-3.3percent in the year 2015.However, inflation rates have decreased over the years ,3.0% to 1.4% in 2011 and 2015 respectively. Equally, exchange rates have gone down from 1.02 to 0.73% in 2011 and 2015 respectively.

        According to economists, Australia’s growth rate is going to rise due to the expected investment recovery. Unemployment levels have declined in April 2017 while inflation rates have exceeded Reserve Bank target (Focus economics.2017)Following the mining boom ,Australia s economy was partly cushioned against the effects of the global financial

 crisis(Phiips,2016)The unemployment rates were relatively low following the mining boom .Australia purchasing capacity and households income were boosted. According to trading economics,Australias inflation rate in March 2017 was  recorded at 2.7 percent , the highest  score sincethe year 2014 due to high prices of commodities such as food and housin in the county.

   Notably, Australia s unemployment levels went down between the years of 1995 to the year 2008 at 8.5 and 4.2 per cent respectively. However, the unemployment bracket rose to 5.65 in 2009 and fell in 2010 by 5.1%.However it rose to 5.2 and increased till the year 2014.Noteworthy, Australia s inflation rate has been fluctuating over the years 1995 and 2014.

    Noteworthy, Canada s inflation rate as at April 2017,was an increase by 1.6percent  due to high transport, housing and energy prices .However ,food prices have declined. Notably, transportation costs rose by 4.2% whereas housing prices rose by 2.2 %. Generally, consumer prices went up by 2.1 percent .However, in the year 2015,Canada s Gross Domestic product was a decrease as compared to its 2013 performance  by  US$1553bn from USD 1795bn.Further,its economic growth rate went down between the years 2011 to 2015 from 3.1percent to 0.9percent respectively. Equally, investment levels have declined from 2.6% to 0.3% in 2011 and 2015 respectively. However ,inflation rates have been on the downtrend since 2011 to 2015 at 2.9% to 1.1% respectively(Focus Economics,2017)

      Similarly, the interest rates declined at 1.0 between the years 2011 to 2014 and later dropped to 0.5 in 2015.  Noteworthy ,Canada s inflation as at April 2017 were considered stable with an economic growth stagnation(Focus Economics)Following the Global financial crisis,Canadas banking system wasn’t adversely affected when most  economies were suffering from shortage of financial stability .However, the energy and manufacturing sectors are experiencing  low economic growth rates due to decreased aggregate demand after the global financial crisis(Bergeviin,2008)    Noteworthy, Canadian Unemployment rates slowed down between the years of 1995 to 2008.In the year 2009, unemployment rates went high and later slowed in the year 2014 at 8.3 and 6.9 respectively.   In  April 2017,Canadian unemployment rates decreased  by 0.2% to 6.5% due to the decline in employment in other industries such as construction and business.

Economic Outlook of Canada

     Noteworthy, India s Gross domestic product stood at USD2,081 bn in 2015 which is an increase over the preceding four years .Further, there’s been a significant economic growth since the year 2011 to 2015 at 6.7 percent to 7.9percent respectively .Moreover investment levels have increased  from 4.1percent to 6.1percent.In addition, exchange rates have risen over the years from 50.88 per cent to 66.25.However,the interest rates have decreased from 7.5 in 2014 to 6.7in 2015(Focus economics,2017) Noteworthy ,India s unemployment rates  were highest between the years 2004 and 2010 .However, unemployment levels have reduced since 2010 to 2014.The highest and lowest  unemployment score was 9.4% and 4.9% respectively(Trading economics,2017)in 1998,the unemployed population rate was 7.32percent.

   Significantly, India inflation rate has fluctuated over the years with its lowest inflation rate since 1995 at 3.7% in 2001 and the highest at 12.11% in 1998(Inflation.eu,2017)Inflation rate for the year  2014 was a reduction  from the 2013 at  10.92% to 6.37%.                                   Year                        Inflation(%)

    According to BBC, India s inflation rate in the year 2014 fell by five points from 2013.The decreased inflation is attributed to the low food and fuel pricing. Notably, the wholesale price index went up by 2.38 percent. Notably, the increase in international crude oil pricing lowered India s fuel price stability from 4.5% in August to 1.3percent in September .Also ,the low pricing of food products such as tea, maize and fish contributed to low inflation rate in 2016.Further,the reserve of bank of India retained its 2013 credit  rate(BBC,2014)The Global financial crisis effects on the Indian economy were moderate .India s economic growth rate is attributed to trade ,industrial and financial structural initiatives as compared to global issues(Bajpai  ,n.d.)    

     Canada had the highest unemployment rate in the year 2014 as compared to Australia and India.Australia s unemployment rate is higher than Indias.Regarding inflation,India had the highest inflationary pressures as compared to Australia and Canada.Further,Australia s inflation rate was higher than Canada in the year 2015.India s low inflationary pressures is due to  its internal institutions structure.However,Australia high inflation rates is attributed to high commodity prices.High commodity pricing is to blame for Australia high inflation rate wheres India s low inflation rates is due to low commodity pricess of foodstuff and crude oil.In 1995,Australia inflation rate was higher than Canada ‘s.

     However,in 1998,Canada inflation rate was higher.In 1995 and 1998,India s inflation rate was the highest due to high consumer price index.From the year 2008 -14,Australis inflationary pressures have been higher than Canada’s.Further,Canada s unemployment rates has always been the higher than Australia since the year 1995  to 2014 due to decline in economic ventures and production activities.According to statistica India s economic growth rate is fast rising thus creating jobs which has reduced unemployment rates significantly over the years.Noteworthy,between the years of 2010 and 2015,India s unemployment rates were the highest among the three countries.India S unemployment rate was 9.3% in 2014 according to Statista and 6.1 and 6.9 for Australia and Canada respectively.Further,India unemployment rate was 10% in 2010,5.2% for Australia and 8.1% for Canada.

 Conclusion

     Arguably,Australia,Canada and India have all experienced fluctuations in their unemployment and inflation levels for global and national reasons.Notably,Australia,Canada and India did not suffer Advesrely due to the global financial crisis like other economies.For Australia,the mining boom offered a cushion against the shock,Canada has a strong financial and banking system whereas India had national structural structure which mitigated the effects promptly.Between Canada and Australia,Canada has the highet unemployment rates.Generally,Australia unemployment rates are lower than India.

References

Bajpai, N.(n .d.)Global Financial Crisis, Its impact on India and the Policy Response .Global Centers .Retrieved from  https://globalcenters.columbia.edu/content/global-financial-crisis-its-impact-india-and-policy-response

Bergevin, P. ( 2008) The Global Financial Crisis and its impact on Canada. International  Affairs, Trade and Finance. Retrieved from https://lop.parl.ca/content/lop/researchpublications/prb0834_05-e.htm

Focus Economics.(2017)Australia Economic Outlook .Focus Economics. Retrieved from https://www.focus-economics.com/countries/australia

Focus Economics. (2017)Canada Economic forecast. Focus Economics .Retrieved from https://www.focus-economics.com/countries/canada

Focus Economics. (2017)  India  Economic Outlook .Focus Economics. Retrieved from https://www.focus-economics.com/countries/india

Inflation.eu . (n.d.) Historic Inflation Data India. Inflation.eu. Retrieved from https://www.inflation.eu/inflation-rates/india/historic-inflation/cpi-inflation-india.aspx

Phillips.(2016)The Mining boom that Changed Australia. ABC  News. Retrieved from https://www.abc.net.au/radionational/programs/rearvision/the-mining-boom-that-changed-australia/7319586

Trading   Economics .India Unemployment Rate. Trading  Economics. Retrieved from https://www.tradingeconomics.com/india/unemployme