Comparative Economic Analysis: Unemployment and Inflation in Australia, Canada, and India

Comparative Economic Analysis: Unemployment and Inflation in Australia, Canada, and India

Examine Australia's unemployment and inflation statistics to provide a summary of the nation's economic status. Examine the unemployment and inflation rates of nation 1 (from list 1) to provide an overview of its economic status.Examine the unemployment and inflation rates of nation 2 from list 2, offering a summary of its economic status. Compare the unemployment and inflation rates of Country 1 and Country 2 with those of Australia. Examine analogous patterns and/or disparities in unemployment and inflation rates during the specified time frame.Examine pertinent factors influencing the patterns you have recognized as a result of global, regional, and/or country-specific challenges or occurrences. 

Australia's Economic Forecast

Economic situations undoubtedly differ throughout all countries.Nonetheless, some macroeconomic indicators may be influenced by global, regional, or national occurrences.Australia, Canada, and India have shown varying rates of unemployment and inflation throughout the years for specific reasons.A comparison of the economic circumstances and performance of these three nations is conducted, highlighting the reasons for the discrepancies.

     The Australian economy is being hindered by stagnant wage growth, limited employment opportunities, and declining housing investments. Nonetheless, there is an increase in commodity prices that has improved the balance of trade. Australia's Gross Domestic Product declined from US$66,838 billion in 2011 to US$51,359 billion in 2015.The pace of economic growth has markedly declined from 2.7 percent in 2011 to 2.0 percent in 2015 (Focus Economics, 2017).Moreover, investment levels decreased from 6.9% in 2011 to -3.3% in 2015.Nonetheless, inflation rates have decreased throughout the years, from 3.0% in 2011 to 1.4% in 2015. Similarly, exchange rates decreased from 1.02% in 2011 to 0.73% in 2015.

        Economists predict that Australia's growth rate will increase owing to anticipated investment rebound. In April 2017, unemployment levels decreased, although inflation rates above the Reserve Bank's objective (Focus Economics, 2017).In the aftermath of the mining boom, Australia's economy was somewhat insulated from the repercussions of the global financial crisis.

 catastrophe(Philips, 2016)The unemployment rates remained comparatively low after the mining boom.The buying power of Australia and family income were enhanced. As to Trading Economics, Australia's inflation rate in March 2017 was reported at 2.7 percent, the highest level since 2014, attributed to elevated costs of goods such as food and housing in the country.

   Significantly, Australia's unemployment rates decreased from 8.5 percent in 1995 to 4.2 percent in 2008. Nevertheless, the unemployment rate increased to 5.65 in 2009 and then decreased by 5.1% in 2010.Nevertheless, it ascended to 5.2 and continued to rise until the year 2014.Significantly, Australia's inflation rate has varied between 1995 and 2014.

    As of April 2017, Canada's inflation rate increased by 1.6 percent, attributed to elevated transportation, housing, and energy costs.Nevertheless, food costs have decreased. Transportation expenses increased by 4.2%, while house prices ascended by 2.2%. Overall, consumer prices increased by 2.1 percent.In 2015, Canada's Gross Domestic Product declined by US$155.3 billion compared to its 2013 performance, falling from USD 1,795 billion to USD 1,640.7 billion.Moreover, its economic growth rate declined from 3.1 percent in 2011 to 0.9 percent in 2015. Investment levels have decreased from 2.6% in 2011 to 0.3% in 2015. Nonetheless, inflation rates have seen a downward tendency from 2011 to 2015, decreasing from 2.9% to 1.1%, respectively (Focus Economics, 2017).

      Correspondingly, the interest rates decreased by 1.0 from 2011 to 2014 and then fell to 0.5 in 2015.  Notably, Canada's inflation as of April 2017 was deemed steady notwithstanding economic growth slowdown.Focus EconomicsIn the aftermath of the Global Financial Crisis, Canada's banking sector remained relatively unscathed as many nations grappled with a lack of financial stability.Nonetheless, the energy and industrial sectors are seeing subdued economic growth rates attributed to diminished aggregate demand after the global financial crisis.Bergeviin, 2008    Significantly, Canadian unemployment rates decreased from 1995 to 2008.In 2009, unemployment rates peaked and then decreased to 8.3 in 2014, reaching 6.9.   In April 2017, Canadian unemployment rates fell by 0.2% to 6.5% as a result of reduced employment in sectors such as construction and business.

Canada's Economic Forecast

     India's Gross Domestic Product reached USD 2,081 billion in 2015, reflecting an increase over the prior four years.Moreover, there has been substantial economic growth from 2011 to 2015, ranging from 6.7 percent to 7.9 percent, respectively.Furthermore, investment levels have risen from 4.1 percent to 6.1 percent.Furthermore, exchange rates have increased throughout the years from 50.88 percent to 66.25 percent.Nonetheless, interest rates declined from 7.5 in 2014 to 6.7 in 2015 (Focus Economics, 2017). Significantly, India's jobless rates peaked between 2004 and 2010.Nevertheless, unemployment rates have declined from 2010 to 2014.In 1998, the greatest and lowest unemployment rates were 9.4% and 4.9%, respectively (Trading Economics, 2017), while the jobless population rate was 7.32%.

   Notably, India's inflation rate has varied throughout the years, with its lowest rate since 1995 at 3.7% in 2001 and its highest at 12.11% in 1998.(Inflation.eu, 2017)The inflation rate for 2014 decreased from 10.92% in 2013 to 6.37%.                                  

Year Inflation Rate (%)

As reported by the BBC, India's inflation rate in 2014 decreased by five points compared to 2013.The reduction in inflation is ascribed to the lowered prices of food and gasoline. The wholesale price index increased by 2.38 percent. The rise in worldwide crude oil prices diminished India's fuel price stability from 4.5% in August to 1.3% in September.The low prices of food staples, including tea, maize, and fish, contributed to the low inflation rate in 2016.Furthermore, the Reserve Bank of India maintained its 2013 credit rate (BBC, 2014).The impact of the global financial crisis on the Indian economy was mild.The economic growth rate of India is ascribed to trade, industrial, and financial structural measures in contrast to global challenges (Bajpai, n.d.). 
 

In 2014, Canada exhibited the highest unemployment rate in comparison to Australia and India.The unemployment rate in Australia exceeds that of India.In terms of inflation, India saw the most significant inflationary pressures relative to Australia and Canada.Moreover, Australia's inflation rate exceeded that of Canada in 2015.The low inflationary pressures in India are attributable to its internal institutional framework.However, Australia's elevated inflation rates are related to high commodities costs.The elevated commodity prices are responsible for Australia's high inflation rate, whilst India's low inflation rates may be attributed to the reduced commodity prices of foodstuffs and crude oil.In 1995, Australia's inflation rate exceeded that of Canada.

     In 1998, Canada's inflation rate was high.In 1995 and 1998, India's inflation rate peaked owing to an elevated consumer price index.From 2008 to 2014, inflationary pressures in Australia were greater than those in Canada.Furthermore, Canada's unemployment rates have consistently exceeded those of Australia from 1995 to 2014, attributable to a reduction in economic endeavors and manufacturing activity.Statistica reports that India's economic growth rate is rapidly increasing, resulting in job creation and a considerable reduction in unemployment rates throughout the years.Significantly, between 2010 and 2015, India's jobless rates were the highest among the three nations.In 2014, India's unemployment rate was 9.3%, whereas Australia's and Canada's rates were 6.1% and 6.9%, respectively, according to Statista.Moreover, the unemployment rate in India was 10% in 2010, whereas it was 5.2% in Australia and 8.1% in Canada.

 Final Assessment

     Australia, Canada, and India have all seen variations in their unemployment and inflation rates due to both global and national factors.Significantly, Australia, Canada, and India were not adversely affected by the global financial crisis as other economies were.Australia's mining boom provided a buffer against the shock; Canada has a robust financial and banking system, while India's national structural framework effectively alleviated the consequences swiftly.Canada has higher unemployment rates than Australia.Typically, unemployment rates in Australia are lower than those in 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