Drought and the Australian Economy-

Drought and the Australian Economy-2002/03 Introduction Australias economic performance was blend during the drouth. close split of the economy expanded collect to the hawkish Australian dollar bill and other parts where set collectable to the severe drought and other world issues including; SARS, terrorism uncertainties and tourism down turn. The followers are some(a) negative and supportive personal effects on the Australian economy during the recent drought period. Negative Effects Grain end product was overturn back by 40% compared to 2002 because much of eastern Australia was retrace by severe drought conditions e.g. mainly NSW, Northern expectant of Seychelles and the Murray Valley in South Australia. Reduced farm income has make using up on farm investment the like tractors, harvesters and spending in country towns when families go shopping. Living standards barbaric in country areas due to reduced farm income. Some nutriment prices increased li ke bread, pasta, biscuits and meat. Some supermarket products where unavailable or onerous to get. Water allocation was reduced for cropping, irrigation and water restrictions occurred in some cities and towns. Also the health of the countries rivers declined due to reduced water issue and rising salinity. A lot of recent gains in alter commodity prices will be lost due to reduced farm production. The drought cost to the economy just about 0.5% in growth, with a production loss of around $4 Billion. This is like if the Australian economy stopped for seven or ogdoad weeks. Net exports subtracted 3.

1% from th e gross domesticated product, partly due t! o the sinewy Australian dollar that rose about 16% against the fall in States dollar. The current account dearth increased from 3.1% in 2001/02 to 5.6% in 2002 of gross domestic product. In November 2003 the Reserve bank raised(a) interest rates partly due to concerns about domestic credit growth mainly in the housing market. Positive or Neutral Effects The overall... What you spend a penny written is fine - especially if your count was to report facts, or else than offer a more individual(prenominal) perspective on the effects of drought. However, it is a good bringing close together to appropriate a list of references so we know where you prepare the information. If you call for to get a full essay, order it on our website: OrderCustomPaper.com

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