Australia is a major commodity exporter and a highly developed economy. While many advanced nations struggled with high structural unemployment in the mid-2010s, Australia managed to maintain a relatively robust labor market, supported by strong trade links with Asia.
Table 1 – A comparison of Australia and OECD average annual % real GDP growth rates
| Year | Australia (%) | OECD Average (%) |
|---|---|---|
| 2017 | 2.4 | 2.6 |
| 2018 | 2.9 | 2.3 |
| 2019 | 1.9 | 1.6 |
| 2020 | -2.1 | -4.8 |
| 2021 | 4.9 | 5.6 |
| 2022 | 3.7 | 2.9 |
Despite global supply chain disruptions, the Australian economy showed resilience, rebounding strongly in 2021. This rapid recovery, however, began to fuel domestic price rises.
Table 2 – Australia's Quarterly Consumer Price Index (CPI) – March 2021 to March 2022
| Base Year: 2011/12 = 100 | Mar-21 | Jun-21 | Sep-21 | Dec-21 | Mar-22 |
|---|---|---|---|---|---|
| Consumer Price Index (CPI) | 117.9 | 118.8 | 119.7 | 121.3 | 123.9 |
'Australia’s government is keen to maintain low and stable inflation.'
State one other possible macroeconomic policy objective of the Australian government.
