stats and examples

Question 1

trade with asia

Answer 1

65% of two-way trade is with asia and our top partners are China, Japan and Korea

Question 2

export trend over last decade

Answer 2

our exports have nearly doubled with our key exports being coal, iron ore, education and minerals

Question 3

trade flow increase for emerging economies

Answer 3

increased from 7% to 19% between 1995 and 2015

Question 4

trade in g/s as a share of GDP - global

Answer 4

o Between 1990 and 2018, trade in goods and services as a share of global output increased from 38.5% to 50%

Question 5

gfc on global financial markets

Answer 5

Total activity on global capital markets fell by approximately US $1000 billion between 2008 and 2009 due to the GFC

Question 6

forex turnover

Answer 6

daily turnover increased from $4 trillion in 2010 to $6.6 trillion

Question 7

change in foreign investment

Answer 7

Easing capital controls and increasing financial deregulation has caused FDI to increase by 6x between 1995 and 2015

Question 8

impact of 5g

Answer 8

The introduction of 5G networks is set to increase global GDP as it facilitates faster mobile connectivity and drives gains in productivity and efficiency

Question 9

migration

Answer 9

According to the World Bank, 3% of the global population have migrated to work in different countries

Question 10

general trend for world output and growth

Answer 10

Between 2004 and 2020, the general trend is for world output and trade to grow by about 4% annually in real terms over time

Question 11

g7 impact on aus economy

Answer 11

Research by the RBA shows that 63% of changes in output in Australia have been due to changes in interest rate growth levels and inflation in G7 countries.

Question 12

wto examples

Answer 12

o Trade Facilitation Act (2017) aims to improve the efficiency, effectiveness and fairness of agencies that oversee trade. Estimated economic benefit of between $68 billion and $1 trillion
o The Doha Round aimed to reduce agricultural subsidies employed by advanced economies to grant emerging economies greater global market access

Question 13

imf examples

Answer 13

o After the GFC, the IMF injected US $250 billion into the global economy to promote liquidity, and suspended interest repayments on loans to help developing economies

Question 14

world bank examples

Answer 14

o World Bank’s major goals include reducing the rate of extreme poverty to less than 30% by 2030 and reducing inequality by fostering income growth for the world’s bottom 40%

Question 15

un examples

Answer 15

o Paris Climate Agreement was signed at the UN Climate Change Conference. Agreement to limit the increase of global temperatures to 2 degrees this century, preferably limited to 1.5. 191 parties have joined the Agreement
o Sustainable Development Goals include: decent work and economic growth; reduced inequalities; gender equality; quality education

Question 16

oecd example

Answer 16

o In 2018, they released an OECD Pensions Outlook, which examines how pension systems are adapting to improve retirement outcomes

Question 17

eu data

Answer 17

o EU accounts for 17% of the world market of exports
o For non-members, there are high rates of protection for agricultural goods. In 2016, the EU’s Common Agricultural Policy subsidies absorbed 38% of its budget

Question 18

apec data

Answer 18

o APEC has a target of ‘free trade’ by 2020 under the Bogor Declaration
o Tariff levels within countries dropped from 20% to 13% between 1994 and 2018

Question 19

nafta data

Answer 19

o Consumers have benefitted from lower prices, and US corporations have benefitted from lower costs.
o NAFTA accounts for 13% of global merchandise trade.
in 2020, NAFTA was replaced by USMCA

Question 20

USMCA data

Answer 20

o The International Trade Commission found that, over the next six years, the agreement will increase GDP by 0.35% and increase jobs by 176,000

Question 21

asean data

Answer 21

o Australia and NZ joined in 2010 through the ASEAN-Australia-New Zealand Free Trade Area, with ASEAN nations committing to eliminate tariffs on 96% of Australian exports to the region.

Question 22

china tariffs

Answer 22

o Last year, China added anti-dumping tariff of up to 212% on Australian wine.

Question 23

aus tariff levels

Answer 23

o In 2018, Australia’s tariff rates were at a record low of 2.23%

Question 24

local content rules example

Answer 24

o 55% of content broadcast on Australian free-to-air television must be produced in Australia

Question 25

emdg

Answer 25

o Austrade’s Export Market Development Grants (EMDG) reimburses up to 50% of eligible export promotion expenses above $5000 provided that the total expenses >$15,000

Question 26

aus tariff trend

Answer 26

• Tariffs have decreased from 25% in 1980 to around 1.7% today

Question 27

aus HDI + ranking

Answer 27

Australia is ranked 6th in the World for HDI with a HDI of 0.94.

Question 28

wealth distribution

Answer 28

The Richest 1% own 44% of the world’s wealth - up from around 30% through the 1980s. The number of billionaires it took to equal the wealth of the world’s poorest 50% fell from 380 in 2009 to 26 in 2019.

Question 29

income inequality

Answer 29

o According to the IMF, income inequality has increased by 0.45% per year over the past three decades

Question 30

apple exploitation

Answer 30

In 2019, Apple was accused of labour violations in China. Apple denies most allegations but acknowledged that they exceeded the number of contract workers allowed by Chinese Law and agreed to compensate workers

Question 31

global energy use

Answer 31

A report by the OECD predicts that by 2050, the world economy will be four times bigger than it is today and will use 80% more energy.

Question 32

financial contagion - GFC

Answer 32

Advanced economies contracted by 3.4% and the world economy experienced a recession

Question 33

shenzhen growth

Answer 33

Between 1981 and 1993, Shenzhen maintained an average annual growth rate of 40%.

Question 34

china export volumes before and after

Answer 34

Prior to the implementation of the Open Door Policy, China was ranked 32nd in the world in terms of export volume. By 1989, it had reached the 13th rank.

Question 35

china tariff levels

Answer 35

. Between 2001 and 2010, China’s average tariff rate fell from 14.1% to 3.7%.

Question 36

china exports 2000s

Answer 36

Over that decade, GDP nearly doubled, exports increased by 590% and imports increased by 570%.

Question 37

china net exports as a share of GDP

Answer 37

Between 2002 and 2007, net exports as a share of GDP rose from 2.1% to 7.7%.

Question 38

fdi into china

Answer 38

between 2001 and 2002, FDI into China increased by 30%.

Question 39

biggest economy

Answer 39

In 2014, China overtook the US to become the largest economy in the world in terms of GDP at PPP.

Question 40

china average growth rate 1978-2005

Answer 40

Between 1978 and 2005, China maintained an average annual growth rate of 9.5%

Question 41

china growth 2001-2010

Answer 41

2001 and 2010, growth averaged 10.5%,

Question 42

china post 2016 growth

Answer 42

Since 2016, their growth rate has averaged 6.5% and the IMF has projected that by 2024 it will have fallen to 5.5%.

Question 43

china % global gdp and population

Answer 43

According to the IMF, China produces 17.1% of global GDP and contains 20% of the global population.

Question 44

china pop below poverty line

Answer 44

In 1990, two thirds of China’s population lived below the poverty line, as defined by the World Bank. By 2016, that number had fallen to 0.5%.

Question 45

china hdi

Answer 45

China’s HDI value rose from 0.52 in 1990 to 0.74 in 2018. They are the only country to have moved from the low human development category to the high human development category since the UN began collecting and analysing HDI data in 1990.

Question 46

china per capita incomes

Answer 46

Per capita incomes have risen from 6500 yuan in the early 1980s to 57,800 yuan in 2015.

Question 47

china life expectancy

Answer 47

Between 1978 and 2016, life expectancy increased from 63.2 to 76.7.

Question 48

china environment - oecd report

Answer 48

A 2007 OECD report concluded that unless pollution levels were controlled, by 2020, pollution would cause 600,000 premature deaths and 20 million cases of respiratory illness every year.

Question 49

china environment loss to gdp

Answer 49

It’s estimated that 7% of GDP is lost every year to pollution.

Question 50

china % emissions

Answer 50

In 2019, China was the world’s largest emitter of greenhouse gases with approximately 27% of global emissions.

Question 51

china urban rural incomes

Answer 51

In 1978, urban incomes were 2.5x higher than rural incomes, by 2012 they were 3x higher

Question 52

china gini coefficient

Answer 52

Gini coefficient has risen from 0.3 in the early 1980s to 0.385 in 2016, however the Standardised World Income Inequality database estimates that the actual figure could be as high as 0.5

Question 53

china emission

Answer 53

emissions grew by 4% in the first half of 2019.

Question 54

trade as % gdp

Answer 54

Trade as a percentage of GDP increased from 12% in the 1980s to 22% in 2018

Question 55

fdi in aus

Answer 55

Over the last decade, FDI into Australia and investment overseas by Australians has doubled

Question 56

cas

Answer 56

In 2019, Australia delivered its first Current Account Surplus in 44 years. The driving force is a string of consecutive trade surpluses, due to strong commodity prices. since 2013 Australians have owned more of foreign companies that overseas investors have owned of ours. Record low interest rates globally have reduced repayments on our debt. Australia’s net foreign liabilities have been declining for the past decade to be at their lowest as a share of GDP since the early 2000s.

Question 57

aus protection trends

Answer 57

Between 1995 and 2018, the average tariff level decreased from 9% to 0.8%. In that time, the volume of exports increased by 8.6% which increased Australia’s GDP by around $4 billion. In 1994, Australia became a member of the WTO, and since then we have joined numerous bilateral and multilateral FTAs.

Question 58

jaepa stats

Answer 58

The 38.5% tariff on Australian beef will be halved over fifteen years, and the the 15% tariff on Australian wine will be eliminated by April 2021. Between 2015-16 and 2018-19, Australia’s merchandise trade with Japan rose from $40 billion to around $60 billion

Question 59

chafta stats

Answer 59

China is Australia’s top export destination accounting for 30% of all exports, as well as our 9th largest source of investment. Exports to China nearly doubled from $87 billion in 2015 to $169 billion in 2019. However, its success has been hindered by the Chinese Government’s introduction of tariffs against Australian exporters over 2020 and 2021.

Question 60

aus AD

Answer 60

The main industries that contribute to growth in Australia include health and education, finance mining and construction. Around 70% of our GDP is service based.

Question 61

trend in unemployment

Answer 61

Unemployment increased due to COVID, peaking above 7% and resulted in a fall in the participation rate. Higher unemployment was experienced from the mid 1970s onward due to microeconomic reforms and structural changes within the Australian economy. Casualisation of the workforce has resulted in rising unemployment. Between 2007 and 2021, underemployment increased 5.5% to 7.9%. Prior to COVID, unemployment was steadily declining.

Question 62

youth u/e

Answer 62

In 2019, the unemployment rate for people aged 15-19 was 7% higher than the national unemployment rate

Question 63

inflation trend

Answer 63

Inflation remained below 3% in both CPI and underlying terms for most of the 1990s. Australia’s inflation rate averaged 2.7% between 1994 and 2020, slightly above the OECD average of 2%.

Question 64

covid inflation

Answer 64

CPI fell by -1.9% in the June Quarter 2020 and by -0.3% over the year to June 2020 quarter. Mainly due to a fall in world oil prices and price falls for spending in categories affected by the lockdowns due to COVID.

Question 65

recent budget deficits

Answer 65

The 2020-21 budget had an estimated deficit of around $167 billion, and the 2021-22 budget had a deficit of around $106.6 billion.

Question 66

changes to tax system aus

Answer 66

research from ANU on the 2019 budget found that new tax policies may “make the tax system marginally more regressive, favouring high income earners over lower income earners.”

Question 67

sale of gov bonds

Answer 67

In July 2020, the Government sold $15 billion worth of bonds, and then another $14 billion worth in April 2021. According to the ABC, 68.1% of investors were based in Australia.

Question 68

impact of national competition policy

Answer 68

Studies undertaken by the Productivity Commission concluded that National Competition Policy had a substantial impact on productivity growth and helped to underpin the strong period of economic growth that Australia enjoyed in the 1990s and early 2000s.

Question 69

awards

Answer 69

In 1990, more than 80% of workers were covered by an award, but this has declined to less than 20% today.

Question 70

min wage

Answer 70

The current minimum wage is $20.33 an hour or $772.60 per week.

Question 71

eco growth between june 2020 and june 2021

Answer 71

between june 2020 and june 2021, real gdp was up 9.6%

Question 72

latest gdp per capita

Answer 72

9.4% in the year to june 2021

Question 73

gdp per annum

Answer 73

over the two year period between June quarter 2019 and 2021, GDP has increased at a rate of 0.1% per annum

Question 74

household consumption

Answer 74

household consumption rose 15.4% in june 2021 compared to june 2020 - this followed a 13.2% decline in year to june 2020

Question 75

business investment

Answer 75

business investment fell by 5% in the year to June 2020, but has increased by 6.2% in the last twelve months

Question 76

export volumes

Answer 76

export volumes in the june 2021 quarter were 2.6% lower than in june 2020 and also 13.6% lower than in june 2019 primarily due to lower overseas demand

Question 77

import volumes

Answer 77

imports rose 16.8% over the year to June 2020 after falling 20% the year prior

Question 78

unemployment data

Answer 78

4.5% as of August 2021 cyclical high of 7.4% in July 2020 pre pandemic level was 5.0%

Question 79

underemployment data

Answer 79

underemployment rate has risen from 7.4% in May 2021 to 9.3% in August 2021, and previously peaked at 13.6% in April 2020

Question 80

cpi stats

Answer 80

CPI increased 3.8% in the year to june 2021, however underlying inflation is only 1.7%

Question 81

wage price index

Answer 81

in the 12 months to June 2021, the wage price index was 1.7% above the level of one year earlier

Question 82

current account surplus

Answer 82

in the 2020/21 financial year, the CAS was $68 billion which was 3.3% of GDP this was an increase from the $35.9 billion surplus recorded in the previous financial year

Question 83

terms of trade

Answer 83

terms of trade index moved from 99.4 to 123.3 in the year to june 2021

Question 84

australia's foreign debt

Answer 84

in the year to june 2021, Australia's net foreign debt increased 4.7% to be 1,186 billion foreign debt is now at 57.4% of nominal annual GDP, up from 57.1% the year prior

Question 85

government deficit

Answer 85

in 2021/22, the expected deficit is 106.6 billion (5% of GDP), which follows an expected deficit of 161 billion (7.8% GDP) in 2020/21

Question 86

geopolitic tensions with China

Answer 86

banning of Huewai | exacerbated by AUKUS

Question 87

change in exports to China

Answer 87

exports to China have fallen by $5.4 billion in the last year

Question 88

protections that China has added and results

Answer 88

barley - 80.5% -> aus diversifying to Mexico, Saudi Arabia Wine -> 212% tariffs -> wine x to china down 98% disincentivising tourism and students - chinese tourists spend 3x more than other tourists

Question 89

recent CAS data

Answer 89

``` CAS of 18.3Bn in July iron ore peaked at around $230 USD WA had largest surplus trade surplus of 15Bn exports up 4% - coal 13%, LNG 16% and ag 11% imports down 1% ```

Question 90

effective unemployment

Answer 90

8.4%

Question 91

labour force underutilisation rate

Answer 91

13.9%

Question 92

Paul Bloxham - conflict between eco growth and inflation

Answer 92

HSBC chief economist Paul Bloxham argues that due to the collapse in population growth, the rate at which the economy can expand without causing inflation has fallen to between 1.3% and 1.6%

Question 93

covid disaster payment reach

Answer 93

Minister for government services, Linda Reynolds stated that in July 2021 more than $827 million in COVID-19 disaster payments had been paid to more than 680,000 individuals