The Australian economy right now is peaking.
News: Australian economy faring well against tough global conditions
The global economy is going through a rough patch, however Australia seems to be thriving. They have strong economic indicators, including a low interest rate and low unemployment.
News: Australian economy will stay resilient, but subdued commodities prices are starting to challenge some sectors of the economy and some states
With as well as Australia's economy has been doing, it seems as though growth is going to slow down considerably. The economy is likely at it's peak right now, so it could be headed for a bit of a contraction.
Australian GDP per capita: 61,979.9
Total GDP: 1.455 trillion
Population: 23.47 million
Life Expectancy: 82 years
GDP Growth: 0.6%
Interest Rate: 1.75%
Unemployment Rate: 5.7%
Household Saving Ratio: 7.6%
Economic Growth: 3%
In order to maximize capital per worker, there are a few things that the Australian economy should do to remain at this peak for as long as possible. To keep GDP per capita where it is right now the economy needs to make sure that workers are being productive. Offering incentives programs for companies could be a good way to keep workers motivated and keep up production rates.
Saving and Investment
If production stays high, it is important that consumers continue to purchase these products. So we need to find the right balance between savings and investments. It is certainly important to save money, but we need to make sure people are still consuming enough to keep the economy stimulated. If everyone is saving all of their money, the economy will fall quickly.
New technology is good for economy. Australians need to continue to develop new methods of production to maximize capital per worker and make sure they are producing everything in the most efficient ways possible. Technological advances are very important in continuing to build the economy and greatly increase production without increasing workers.