Economy of Australia: Difference between revisions

The early 1990s recession came swiftly after the [[Black Monday]] of [[Black Monday (1987)|October 1987]], resulting from a stock collapse of unprecedented size caused the [[Dow Jones Industrial Average]] to fall by 22.6%. This collapse, larger than the [[stock market crash of 1929]], was handled effectively by the global [[Economic system|economy]] and the [[stock market]] began to quickly recover. However, in [[North America]], the lumbering [[savings and loan]]s industry was facing decline which eventually led to a [[savings and loan crisis]] which compromised the wellbeing of millions of Americans. The following recession thus impacted the many countries closely linked to the United States, including Australia. [[Paul Keating]], who was [[Prime Minister of Australia|Prime Minister]] at the time, famously referred to it as "the recession that Australia had to have."<ref>[http://www.australianpolitics.com/executive/keating/keating-chronology.shtml Paul Keating – Chronology] {{webarchive|url=https://web.archive.org/web/20110926220100/http://www.australianpolitics.com/executive/keating/keating-chronology.shtml |date=26 September 2011 }} at australianpolitics.com</ref> During the recession, [[GDP]] fell by 1.7%, employment by 3.4% and the unemployment rate rose to 10.8%.<ref>{{cite web|url=http://www.theage.com.au/news/business/the-real-reasons-why-it-was-the-1990s-recession-we-had-to-have/2006/12/01/1164777791623.html?page=3|title=The real reasons why it was the 1990s recession we had to have|publisher=''[[The Age (newspaper)|The Age]]''|date=2 December 2006|accessdate=8 January 2014}}</ref> However, the recession did assist in reducing long-term [[inflation]] rate expectations and Australia has maintained a low inflation environment since the 1990s to the present day.

Between 2010 and 2013, much of the economic growth in Australia was attributed to areas of the country where mining- and resource-based industries and services are mostly located. Western Australia and the [[Northern Territory]] are the only states that have economic growth.<ref name="recession">{{cite web |url=https://www.dfat.gov.au/geo/fs/aust.pdf |title=Economy grows but some non-mining states in recession |deadurl=yes |archiveurl=https://web.archive.org/web/20060824020854/https://www.dfat.gov.au/geo/fs/aust.pdf |archivedate=24 August 2006 |df=dmy-all }}</ref><ref>{{cite news|author=Tim Colebatch |url=http://www.smh.com.au/business/state-close-to-recession-20120307-1ukme.html |title=State close to recession |work=Sydney Morning Herald |date=8 March 2012 |accessdate=25 July 2012}}</ref><ref>{{cite news|author=Tim Colebatch |url=http://www.smh.com.au/opinion/politics/no-place-for-political-stunts-in-tackling-economic-crisis-20120604-1zs23.html |title=No place for political stunts in tackling economic crisis |work=Sydney Morning Herald |date=24 October 2009 |accessdate=25 July 2012}}</ref> During 2012 and 2013 [[Australian Capital Territory]], [[Queensland]], [[Tasmania]], South Australia, [[New South Wales]] and [[Victoria (Australia)|Victoria]] experiences recessions at various times.<ref name="recession"/><ref>{{cite web|url=http://www.crikey.com.au/2012/06/08/tasmanian-recession-not-at-david-walshs-bizarre-world-of-art/ |title=David Walsh: MONA economic benefits for Tasmania |publisher=Crikey |date=8 June 2012 |accessdate=24 July 2012}}</ref><ref>{{cite web |url=http://www.adelaidenow.com.au/recession-biting-our-state-bank-warns/story-e6frea6u-1226317963456 |title=South Australia is in recession, Westpac warns |publisher=adelaidenow |date=4 April 2012 |accessdate=24 July 2012}}</ref><ref>{{cite web|author=|url=http://www.dailytelegraph.com.au/news/rate-cut-may-save-nsw-sliding-into-recession/story-e6freuy9-1226390009700 |title=Rate cut may save NSW sliding into recession|work=The Daily Telegraph |location=Australia |date=10 June 2012 |accessdate=24 July 2012}}</ref><ref>{{cite news | url=http://www.news.com.au/business/victoria-in-a-state-of-decay/story-e6frfm1i-1226296709689 | work=Herald Sun | location=Australia | title=Victoria in a state of decay | date=10 March 2012 | deadurl=yes | archiveurl=https://web.archive.org/web/20120702160447/http://www.news.com.au/business/victoria-in-a-state-of-decay/story-e6frfm1i-1226296709689 | archivedate=2 July 2012 | df=dmy-all }}</ref><ref>{{cite web |url=http://www.melbournetimesweekly.com.au/news/national/national/general/state-close-to-recession/2481890.aspx |title=State close to recession – National News – National – General |publisher=Melbourne Times Weekly |date=8 March 2012 |accessdate=24 July 2012 }}{{dead link|date=July 2017 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> The Australian economy is characterised as a "two-speed economy".<ref>{{cite news| url=http://www.theaustralian.com.au/business/economics/reserve-bank-governor-says-australia-has-long-had-a-two-speed-economy/story-e6frg926-1226389046980 | first=Adam | last=Creighton | title=Reserve Bank governor says Australia has long had a two-speed economy | date=8 June 2012 | work=The Australian}}</ref><ref>{{cite news| url=http://www.brokernews.com.au/article/hia-bursts-swans-economic-bubble-129795.aspx|title=HIA bursts Swan's economic bubble|accessdate=13 May 2014|deadurl=yes|archiveurl=https://web.archive.org/web/20120701232824/http://www.brokernews.com.au/article/hia-bursts-swans-economic-bubble-129795.aspx|archivedate=1 July 2012|df=dmy-all}}</ref><ref>{{cite news| url=http://www.smh.com.au/business/the-economy/banking-made-tricky-by-10speed-economy-clyne-20120814-245rb.html | work=The Sydney Morning Herald | title=Banking made tricky by '10-speed' economy: Clyne | date=14 August 2012}}</ref><ref>{{cite news|author=Tim Colebatch |url=http://www.theage.com.au/opinion/politics/no-place-for-political-stunts-in-tackling-economic-crisis-20120604-1zs23.html |title=No place for political stunts in tackling economic crisis |work=The Age |date=24 October 2009 |accessdate=24 July 2012 |location=Melbourne, Australia}}</ref><ref>{{cite web|url=http://www.stuff.co.nz/taranaki-daily-news/news/7072872/Flow-across-Tasman-tipped-to-reverse |title=Flow across Tasman tipped to reverse |publisher=Stuff.co.nz |date=9 June 2012 |accessdate=24 July 2012}}</ref><ref>{{cite web|url=http://www.abc.net.au/news/2012-06-07/warning-to-tone-down-recession-row/4057108 |title=Warning to drop recession row |publisher=Australian Broadcasting Corporation |date=7 June 2012 |accessdate=24 July 2012}}</ref><ref>{{cite web|url=http://www.themercury.com.au/article/2012/06/07/335121_tasmania-news.html |title=Giddings rejects figures |work=The Mercury – The Voice of Tasmania|date=7 June 2012 |accessdate=24 July 2012}}</ref> From June 2012 to March 2013 Victoria experienced a recession. In 2012 the [[Government of Victoria (Australia)|Government of Victoria]] cut 10% of all jobs in the public service.<ref>{{cite web|url=http://www.wsws.org/en/articles/2013/03/07/bail-m07.html|title=Australia: Victorian premier removed as state slides into recession|work=WSWS.org|accessdate=13 May 2014}}</ref><ref>{{cite web|url=http://www.melbournetimesweekly.com.au/story/1345419/victoria-sa-tasmania-slide-into-recession/?cs=12|title=Victoria, SA and Tasmania slide into recession|work=Melbourne Times Weekly|accessdate=13 May 2014|deadurl=yes|archiveurl=https://archive.is/20130410014323/http://www.melbournetimesweekly.com.au/story/1345419/victoria-sa-tasmania-slide-into-recession/?cs=12|archivedate=10 April 2013|df=dmy-all}}</ref> The period since has seen these trends reversed with West Australia and the Northern Territory, who are heavily dependent on mining, experience significant downturns in GDP while the eastern states returned to growth, led by strong upturns in NSW and Victoria.<ref>{{cite web|url=https://www.commsec.com.au/content/dam/EN/ResearchNews/CommSec_State_of_the_States_July2016.pdf|title=Commsec state of the states, 2016}}</ref>