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One of the core indicators of the economy is the Gross Domestic Product.
Assessment of the Australian economy Introduction When investing there is certain factors that the investor should put into consideration to analyze the potential for maximum returns from any investment venture.
Hence, when deciding whether to invest in any country it is essential to conduct a study on the trends of the country’s economy based on these indicators.
This will result in greater borrowing of loans to invest in the local businesses hence in the short run the inflation will be increased.
Firstly, this will be because of the increased prices of the goods in the market and secondly because of the availability of funding from the banks hence there will be increased capital in circulation.
According to ABS statistics, the credit level in the Australian economy has been raising between the period of ’92 and ’08 a trend that resulted in the high inflation level, in the 2008 period (2012).
This is because there was so much capital in circulation.
The business confidence placed in the Australian economy is also volatile.
This is because of the inconsistency of the market that is constantly changing as it is affected by interest rates, consumer price index, the availability of credit and money from credit facilities, balance of payment of the country, the exchange rates and banking indicators.
This process is to ensure that the investor gets into the business with all the facts hence this will enable him to make wise investment decision, focusing on the area with the most promising returns.
Since the method being used for the analysis of the viability of investment condition of the Australian economy is the top-down fundamental analysis, the trends in the global economy will have to be studied.