When we plan to migrate, we tend to look on things that will satisfy our senses. Is the food good? Will the sights be superb? Are people friendly enough? Do they have Netflix? While taking these into consideration toatlly make sense (you will settle there for the rest of your life, after all), we have to see beyond these things and look at the more important factor that actually affect sustainability of life here. These factors overall economy, employment rate, optimism and the likes.
Worry no more. The Land Down Under takes care of these smoothly, as evidenced by reports we have gathered that implies Australia is going north when it comes to economic sustainability. Here are five of them.
Despite the scares and panic caused surrounding the Brexit last June on a global scale, Australia’s Gross Domestic Product (GDP) grew in the first quarter of 2016, making it the 99th quarter of which the country is in a state of economic prosperity. This hikes up the acceleration growth rate to 3.1%, the fastest since 2012’S September quarter.
Gross domestic product is the value of all the products and services produced by a country within a specified time. This is one of the indicators of a country’s general economic activities.
It has been almost 24 years since Australia had undergone recession, a period of significant decline in economy lasting for a few months. While going through this is quite normal even for developed countries, the Lucky Country has managed to avoid this.
Compared to other first world nations such as Canada, New Zealand, United Kingdom, and Japan, Australia has outperformed them when it comes to GDP, unemployment, and consumer price index (CPI).
The growth of the manufacturing sector not only the by-product of a good economy. In fact, most often than not, it is one of the causes. A country’s GDP is dependent on manufactured goods and services, and between the two, goods is the one on which global trade hinges on.
Recently, Australia bid good bye on Ford’s 91 year-old manufacturing business in the country. But despite this loss, the manufacturing sector is rocking it again. The third quarter of 2016 saw the pillar of economy bouncing back, led by the food industry and increasing the Australian Performance of Manufacturing Index by 2.9 points to 49.8 last month.
And while this is going smoothly, technology has also jumped in to take the manufacturing up a notch by some companies making their factory staff utilise wearable devices to keep an eye on fatigue, preventing workplace accidents in the process.
But this breakthrough isn’t just something that jumpstarted two months ago. The rise of production sector has been already reported as far back as January, with the petroleum, wood and paper products, chemical & rubber products, coal, food, beverages and tobacco, furniture, clothing, textiles, and other industries all witnessed increased activities during this period.
And what happens when production has increased? That means more jobs, which leads us to…
Australia is already known to have very low unemployment rates. But last month’s numbers defied even the most optimistic expectations when unemployment rate from 5.7% to 5.6%, reaching its lowest level in three years. Economist predicted that the numbers will stay at 5.7%, which is already good, but went further lower by 0.01% in August.
The Turnbull government welcomed the development warmly, is this is a result of the 186,000 more jobs they have added to the workforce.
A low unemployment rate means that the number of Australians actively seeking for a job is low in relation to the population of actively employed people. This boosts up the economy in a number of ways. First, it improves efficient utilization of resources and equipment. When this happens, production efficiency increases, meeting customer demands and maintaining good consumer and supplier relations.
Second, it makes finding job easier for Australians, not only because there are more jobs, but also because the companies have confidence in the job market demand in the near future. Third, this means more buying power for the consumer, which in turn increases demand, opening for more jobs. Making at a virtuous cycle.
And since we are on the topic of buying power…
And it seems like this virtuous has begun already. Because of improvements on their personal finances, Australians now a more likely to spend, advancing consumer spending and consumer sentiments in the process, as reported by the Melbourne Institute and Westpac Bank survey last month.
The survey, which included 1,200 participants, found that consumer sentiment stepped up to 0.3% in September from a 2% increase in August. Consumer sentiment measures people opinion about their current financial wellness, as well as the short term and long term growth and wellness of the economy. This is one of the powerful economic indicators available, as if it measures and displays the economic advancement on the human level.
The ANZ-Roy Morgan consumer confidence index also reported the same thing. Despite the falling of a mere 2.2%, consumer confidence in the country remains above its long-run average of 112.8, making it higher than normal.
Rising retail sales are on one of those numbers people will relegate only to increase of department store sales and huge discounts, but as stated above, it is another essential economic indicator. Increase in sales of everyday items exhibits the consumers’ confidence in the market, in the economy, and in their pockets. If they think financial circumstances are bleak, then they will keep their money and save it in the bank. It is good, but not that good, because it does not encourage circulation of money.
With Australia’s August retail sales hitting a +0.4%, it defies (again!) expectations from economists. This amounts to $25.128 billion worth of sales from consumers, and is now the biggest monthly increase since October 2015. Along with department store goods, jumping sales have also been in reported in cafes, restaurants and takeaway food services (1.2%), food retailing (0.3%) and household goods retailing (0.2%).