The Global Financial Crisis Of Australia Essay - 1834 Words

Introduction The Global Financial Crisis (GFC) was the the deepest recession after the World War II economy recession. Australia emerged as the least affected by GFC as compared to other developed economies of the world. After the quarter with negative growth, the march quarter 2009 (0.4% GDP growth), suggested that Australia was able to escape from the world-wide recession. This article looks at each of these three different factors responsible for relatively strong performance of the Australian economy over this period and will examine their role that each may have played. Firstly, the fiscal stimulus policies adopted by Federal Government: secondly, timely policy responses to the effects of the global financial crisis by Reserve Bank of Australia and thirdly, the Australian economy trades significantly with Asia and in particular, China, and how the economy was beneficial from Chinese growth in the global slowdown. (the performance of our major trading partners, particularly China.) Australia emerged as the least affected economy by GFC: Role played by each factor Australia was able to maintain continuously impressive GDP growth as compared to other developed countries since the Global Financial Crisis (GFC) began in 2007. Australia survived from recession by attaining 1% positive growth in the 2008-2009 financial year where many countries of OECD were in recession. Federal Government During the crisis, Australia s financial system was properly structured andShow MoreRelatedThe Term Global Financial Crisis (Gfc) Refers To The Financial1745 Words   |  7 PagesThe term Global Financial Crisis (GFC) refers to the financial crisis of 2008-2009 that, according to leading economists, is the worst financial crisis since the Great Depression (Eigner, 2015). The crisis began in 2007 due to a mortgage market failure in the United States and in the following year, with the collapse of the Lehman Brothers investment bank, advanced into an international banking crisis, which then developed into a global economic crisis, The Great Recession (Williams, 2010). ThisRead MoreGlobal Financial Crisis And Its Effect On Australian Retails Markets1214 Words   |  5 PagesThe Report gives the insight of Global Financial crisis and its effect on Australian Retails Markets and Supermarkets. Particular the Impact of GFC on the one of the second largest leading independent supermarket, FOODWORKS during the period of 2007-2009 and examines the impact of the Global Financial crisis on the performance of the company. The global financial crisis brought with it very many challenges. Some were controllable while others were uncontrollable. Foodworks being the secondRead MoreMacro Environment Analysis1011 Words   |  5 Pages Political Legal Australia government help established trade policies to protect local clothing industries from imported good through high tariffs, quotas, and subsidies. According to Jayanthakumaran (2001), the World Trade Organization (WTO) and the Asia Pacific Economic Cooperation (APEC) have planned to remove the protection on Textiles, Clothing and Footwear (TCF) industries in Australia. Regarding the intense competitions over TCF industries globally, Australia and western industries didRead MoreGlobal Financial Crisis : Its Causes And The Global Responses Essay1592 Words   |  7 PagesAssignment topic: Global financial crisis: its cause and the global responses Introduction The global financial crisis or economy crisis is commonly believed to have begun in July 2007 with credit crunch, when a loss of confidence by the US investors in the value of sub-prime mortgages caused a liquidity crisis. On the other hand, due to the big changes that took place over the last 20 to 30 years in the worldwide economy and the influence of 2007 financial crisis, it has re-emerged as one of theRead MoreGlobal Financial Crisis ( Gfc ) Affect On Coca Cola Company1477 Words   |  6 PagesHow Global Financial Crisis (GFC) affect on Coca-Cola Company and how the Coca-Cola Company used it to regulate that problem? The Coca-Cola organization is thought to be the world number one non-mixed refreshments organization, driving in assembling, advertising and circulation of its item. However, the Global Financial Crisis (GFC), influences all parts of the change procedure in the Coca-Cola company. The financial environment affects the way the materials are handled as well, going down to affectingRead MoreThe Global Financial Crisis ( Gfc )1087 Words   |  5 PagesThe Global Financial Crisis (GFC) began in July 2007 in the United States (US) following the decline in the countries already poor credit ratings and the subsequent collapse of the US housing market and prominent investment bank Lehman Brothers which sent a wave of fear around global economies including Australia and resulted in the largest drop in global economic activity in the modern era. (W. McKibbin, A.Stoeckel, 2009, pg 1). During the years before the crisis there was a significant increaseRead MoreAustralia s Financial Stability With Inflation Under Control1548 Words   |  7 Pagesdebt and a solid financial system as a result of years of structure and policy reforms, Australia today has one of the strongest and largest mixed market economy in the world. Since the early 1980s, successive governments have deregulated financial and labour markets and reduced trade barriers making Australia one of the Asia–Pacific’s wealthiest nations who has enjoyed more than two decades of economic expansion. Although Australia managed to emerge from the global financial crisis relatively unscathedRead MoreInfluence of a Countrys Political Forces on Potential Investors: Sofitel Gold Coast Broadbeach Case Study1254 Words   |  5 Pagescountries political situation can significantly influence investors that intend to do business in these countries. In the case of the political environment in Australia, investors that want to address the countrys accommodation sector must focus on the visa regime and carbon tax. Tourists that are not from New Zealand and want to visit Australia are required to have a visa. The visa must be obtained before arriving to the country. There are several types of visas provided by the Australian governmentRead MoreThe Fiscal Monetary Policy Of Australia1566 Words   |  7 Pagesof Australia Background The global financial crisis (GFC) is begun with the collapse of Lehman Brothers in Sep. 2008, when a loss of confidence in stock investors of the value of sub-prime mortgages caused a liquidity crisis, resulting the global central banks injecting a large amount of capital into the financial markets and consumers confidence hit the bottom, according to McKibbin, W.J. (2009, p.1). The second phase of GFC stepped after the US bank crisis has evolved into the euro crisis, whichRead MoreGross Domestic Product Of Australia1673 Words   |  7 Pages AUSTRALIAN ECONOMY GROSS DOMESTIC PRODUCT As per Australian Bureau of Statistics, Gross domestic product of Australia is 1560.60 USD, with annual growth rate of 2.50 percent. Services sector dominates the total GDP of the economy (65 percent of total GDP). Though service sector is dominant yet major contribution to economy’s success in recent years came from mining sector (13.5 percent of GDP). Some other sectors which have contributed towards the success of Australian economy are manufacturing