Economics Definitions and Trends

Economics HSC 2025

Value of Global GDP

105 Trillion

2024 National Waste Policy Action Plan

identify waste material and streams and handle them via legislation, infrastructure, and innovation. This will halve the amount of organic waste sent to landfill for disposal by 2030 and reduce total waste generated per person by 10%.

Sierra Leone HDI 2023

0.467

Australia HDI (2023)

0.958

Australia gross national income per capita ppp (2024)

$68,800

Sierra Leone GNI Per Capita PPP (2024)

$3,490

Daily foreign turnover in the FOREX market

$7.5 trillion

Value of world trade 2024

$US 33 trillion (29% of global output)

Amount of world GDP made up by advanced economies vs population

42% GDP vs 14% of population

Growth in services from 2023-34

9%

Number of TNCs

104,000

Percentage of forex transactions that are speculative

95%

Estimated amount of people living in extreme poverty

712 million (90 million of which because of COVID)

What is a better gini coefficient?

The closer to 0 the better

Percentage of Global Wealth held by Africa

1%

Ecological International Treaties

Kyoto Protocol (expired 2012), 2015 Paris Agreement keep global average temp increase below 2 degrees

Tariffs around the world

Effective April 2025, America has put a 10% tariff on most imported goods

Total foreign investment in Australia

$4.7 trillion (Including portfolio and FDI)

How much USD can one Australian Dollar buy?

1 AUD = 0.65 USD

EU Common Agricultural Policy subsidy

21% subsidy

Australia protectionist level (One of the least in the world!)

0.5%

AANZFTA

ASEAN-Australia/New Zealand, 2010, Australia’s first multilateral FTA. Benefits access to meat, livestock, dairy industries, tariff reductions for developing ASEAN nations such as Burma and Cambodia, but some issues with local content rules.

RCEP

Regional Comprehensive Economic Partnership, 15 countries from the Asia-Pacific, 2022, better access to markets and diversifies trade networks, but challenged by China’s dominance and exclusion of India.

ChAFTA

China-Australia FTA, 2015, by 2029 aus exports will enter at preferential rates or duty free and rapid tariff reduction

ANZCERTA

Australia New Zealand Closer Economic relations Trade Agreement 1983, all tariffs and quotas eliminated by 1990, now NZ our 9th largest trading partner

Impact of Australia’s liberalisation policy

Increased GDP by almost 6%, increased real wages by almost 8%, increased trade by 28%

Australia’s economic growth for 2024-25

1.3% (Below 2-4% target)

Current Unemployment China, Brazil, Australia

5.2%, 5.6%, 4.2% (Back to around NAIRU)

CPI inflation rate June quarter (China, Brazil, Australia

0.1%, 5.35%, 2.1%

Australia’s approx. net foreign debt in 2024 compared to China and Brazil

47% of GDP, 88.3% in China, 76.1% Brazil

Australia’s Gini Coefficient 2022-23

0.307 (Lower than average of 0.315)

Top quintile holding of income and wealth in Australia

41% of income but 63% of wealth

Proposed microeconomic policy that was rejected because it would harm low-income earners

Increase to the GST from 10-15% in 2025

Percentage of australia’s land area that is protected

20%

Economic growth goal

3-4%

NAIRU

4.5-5%

Inflation goal

2-3%

Suitable CAD

5% short run, over 3% long run

Government expenditure during Covid

Approx $300 billion, approx. 20% of GDP

Stage 3 tax cuts, Personal Income Tax Plan

37c tax bracket removed, 32.5c bracket reduced to 30c

Percentage of spending on the Age pension

10%

Future Made in Australia Package

22.7 billion commitment to support processing of critical minerals and support production of renewable hydrogen for example.

Distribution of income fiscal policy 2024/25 budget

extension on electricity bill subsidies and further 10% increase in rent assistance payments (CRA!)

Percentage of trade made up by China

32.5% of exports go to China

Current CAD as a percentage of GDP (2024)

2.1%

China’s tariffs on Australian wine because of ‘dumping’

100-200%

Okun’s law

Economic growth needs to exceed the sum of growth in productivity plus the increase in the size of the labour force to see unemployment decrease

Keynesian economics

Aggregate demand drives economic activity, output, and employment

The Multiplier

The more than proportional impact of change in spending or investment on national income

Consenting adults theory, pitchford thesis with debt

That private debt is not a concern to economists because individuals understand and are ready to bear the brunt of the consequences.

Australia’s net debt as a percentage of gdp in 2022-23

32% of GDP

What is the current cash rate as of August 2025

3.60%

When was Australia’s CA in surplus?

2021-23 at 2%

Private debt percentage in Australia

over 120% of GDP

Population of China, Brazil, and Australia

1.4 billion, 212 million, 27.2 million

GDP growth of China, Brazil, and Australia

5%, 3.4%, 1.4%

Brazil economic development (Millenium Development Goals)

Poverty and hunger halved (Bolsa Familia), enrolment rose to 98% but quality concerns, gender political and wage gaps but parity in education, under-five mortality cut by 2/3, maternal mortality needs further quality

HDI Brazil

0.76

Change in percentage of Brazilian’s living on less than US $2.15 per day

fell from 15% to 3.5%

Fiscal Responsibility Law (2000) Brazil

Requires reduction in public debt and a medium-term target for the primary fiscal surplus

Brazil Cash Rate Feb 2025

13.25%

Bolsa Familia Program (2004)

Small cash payments (US $35) in exchange for school attendance and preventative health care for children (i.e. vaccines).