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economics yr 12 > topic 2 stats > Flashcards

topic 2 stats Flashcards

1
Q

movement towards globalisation and free trade started in

A

1970

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2
Q

unilateral tariff reduction

A

1973 - Gough Whitlam’s 25% tariff reduction
1988 - Hawkes cuts to manufacturing tariffs (15% in 1989, 5% in 2000)

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3
Q

Australia’s current import tariff position

A
  • avg tariff rate at 3%
  • agricultural tariffs at 2%
  • PMV tariffs at 5%
  • alcohol tariff at 10%
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4
Q

trade surplus’

A

2022 = $140B
2021 = $121B
2020 = $77B
2019 = $49B

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5
Q

exports

A

2022 = $670B
2021 = $520B
2020 = $475B
2019 = $470B

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6
Q

Bias against china:

A
  • 2016 Federal Government denied NSW state of Ausgrid, a Chinese company to buy state electricity for $25B and instead sold for $9B loss
  • 2018 Huawei was blocked from a $50B bid from Australia’s 5g network
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7
Q

Aus current exchange rate

A

pound sterling: 0.51
euro: 0.60
USD: 0.65

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8
Q

global Fx trading figure

A

$4-$4.5T USD

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9
Q

Aus was floated in

A

1983

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10
Q

how many countries in TWI

A

17

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11
Q

base period for TWI vs now

A

100 in 1970
over last 50yrs 62-65 (increase in int. comp.)
current TWI = 61.4

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12
Q

covid stats

A
  • EG 1.5%
  • INF 0.8%
  • cash rate 0.1%
  • currency depreciation 0.58
  • CA 2020 balance = $29.2 (first CAS in 40yrs) –> BOGS = $75.3
  • 2021 NPY = $-22.7 (no investment)
  • KFA 2020 balance = -$29.4/2021 = -$63.4
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13
Q

resources boom eco stats

A
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14
Q

GFC eco stats

A
  • EG 1.1%
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15
Q

George soros stats

A
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16
Q

now eco stats

A
  • 2.1% EG
  • 4.1% INF
  • 4.35% cash rate
  • U/E rate 4.9%
  • spot rate = 0.66
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17
Q

renewed resourced boom eco stats

A
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18
Q

Imports are

A

1/3 of CPI

19
Q

China’s pegged rate

A
  • pegged at around 0.12 USD (undervalued)
  • managed peg between 0.14 and 0.16 now
20
Q

last known time RBA dirtied the float

A

GFC

21
Q

what happens if countries run out of foreign reserves

A

IMF issues SDRs

22
Q

australia’s current foreign reserves are

A

35.2 USD bn reduced from last months 40B
avged at 30USD B

23
Q

Britain EU

A
  • had to stabilise and peg their currency 2-3 yrs before entering the EU
  • Britain’s GDP would be 2.5x higher if they stayed in the EU
24
Q

AUD exchange rate trends

A

2000-2008 (resources boom) = appreciation from 0.58 to 0.85
2008 (GFC) = collapse form 0.98 in July to 0. 60 in october 2008
2009-2010 (renewed resources boom) = appreciation from increase in commodity prices
2010-2013 = stable appreciation due to US’ QE at highest rate of $1AUD to $1.10
2014-2015 = depreciation from US’ eased QE, slower growth in China and uncertainty in investment
2020-2023 = US’ $2T covid-relief act and build back better act of $3.5T may cause AUD to weaken

25
Q

US QE

A

printed $85B a month for 3yrs totalling $4T injected into economy after GFC

25
Q

current AUD trade

A

exports are 25% of GDP up from 15% in 1950s
imports are 18-22% of GDP

26
Q

australia CAD

A

avg CAD -3% to -6% of GDP (-$4.3B USD) since 1970s due to
- high imports, low int. comp.
lowest point is -$21.6B USD in 2015

27
Q

australia CAS

A

peaked at $21.7B USD in 2021 due to COVID (low imports, low net income debits)
current CAS (28.5) is +1.1% of GDP falling from +2.5% in 2022 due to
- increase mining investments meaning increase in NPY debits
- interest rates rising steeply

28
Q

CAD is unsustainable when

A

it is more than -6% of GDP

29
Q

Australia’s structural change exports

A
  • agriculture fell from 80% of exports to 10%
  • manufacturing is 15% exports
  • mining now 60% of exports –> iron ore rose $200USD/ton and coal exports are estimated to rise 9.6% from 157M metric tonnes to 172M
  • services now 15% of exports
30
Q

CA trend

A

2010-2015 = improvement of CAD (BOGS improved due to less imports though steady exports, PY improved due to low interest rates)
2016-2019 = improvement of CAD (BOGS improved due to mining and LNG, PY improved due to low interest rates and US QE)
2020-2022 = CAS
(BOGS improved due to mining and LNG, PY improved due to low interest rates)
now = CAS moving toward CAD
(PY worsening due to high interest rates)

31
Q

CA stats

A

-6.6% of GDP to -2.1% of GDP in 2015
- 1% in 2019
+3.4% in June 2021 and +2.5% in June 2022

32
Q

2020-2022 COVID KFA trends

A
  • decrease in interest rates, FDI fell, decreasing KFA, increasing CAS
  • increase portfolio outflows, decreasing KFA, increasing CAS
  • now increasing interest rates moving back to CAD and increasing KFA
33
Q

types of flows in KFA

A
  • before 2008 mining companies only issued bonds bc they were a long term infrastructure project
  • Aus’ only invest in shares (mainly super is invested)
  • during GFC bonds collapsed uncertain cash out
  • from 2015, mining companies were up and running so they issued shares
  • hot money left AUS during covid
34
Q

Investment in AUS (deregulation of financial markets)

A
  • inflows grown from $250B in 1980s to $4.5T now (UK and US are biggest investors, 22x bigger than China)
  • outflows grown from $150B in 1980s to $3.7T now
  • net foreign liability position $850B
35
Q

composition of exports

A
  1. coal = $142.3B
  2. iron ore = $124.4B
  3. education = $26.6B
  4. wheat = $14.5B
    TOTAL: $670.6B
36
Q

composition of imports

A
  1. refined petroleum = $53.2
  2. Vehicles = $27.7
  3. personal travel = $26.8
    TOTAL = $530.3
37
Q

direction of exports

A
  1. China, although it fell from 36% to 27% of exports
  2. Japan 17%
  3. US 4.6%
38
Q

direction of imports

A
  1. China 21.5% (manufactured goods)
  2. US 10.7% (tech, travel, etc.
39
Q

international student numbers

A

619,371

40
Q

CA stats 2023

A
  • total balance = $28.5
  • BOGS = $138.8
  • net goods = $150.7
  • net primary income = -$108.8
41
Q

KFA stats 2023

A
  • total balance = -$31.1
  • financial acc = -$30.2
  • net portfolio investment = $5.8
  • net direct investment = -$13.4
42
Q

FDI

A

increased to 181% OF GDP

economics yr 12 (12 decks)

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