In: Economics
Consider the world around you, including political, economic and financial considerations. What is the largest risk you perceive to the stability and growth of the Australian economy into the future? Why? [200-250 words] if you could just give me some pointers that'd be awesome!
Australia is one of the countries which has huge natural
resources and comparatively lower population. It has vast land and
coastline and very rich in minerals and metals.
In recent years, Australia has gone through some political
instability but that is not really a cause of concern because it
has neither experienced any decision making paralysis nor any
disruption on the economic front.
A fellow Anglo-Saxon country, New Zealand as the neighbor and no
other powerful hostile country is quite beneficial to
Australia.
Australia has huge land but lower population means it is not a
big manufacturing hub and its economy has relied mostly on mining
and exporting. It has some biggest companies operating there for
Uranium, Gold and for other metals. However, its biggest consumer
is China which has huge needs for resources. However, China has
been struggling with its economy and slower demand recovery from
China because overall cooling down of the world economy has
concerned Australia.
Along with that, the recent trade war between the US and China
could also affect the Australian economy.
Just like other countries experienced an uplift in the housing
market in the boom period of the economy, Australia has also
witnessed strong growth in the housing sector. However, there are
signs now that it might turn out to be an asset bubble.
Immigration policy changes which have lowered the number of
migrants means there will be a lower demand for housing.
Another big risk is an environmental risk. Australia and New Zealand are much more prone to climate change and global warming considering their geographical location and local industries.