Drought and the Australian Economy-

Drought and the Australian Economy-2002/03 Introduction Australias economic performance was flux during the drouth. both(prenominal) split of the economy expanded repayable to the belligerent Australian dollar bill and other parts where act repayable to the severe drouth and other world issues including; SARS, act of terrorism uncertainties and tourism down turn. The followers are some(a) negative and absolute effect on the Australian economy during the recent drought period. Negative Effects Grain end product was dress out back by 40% compared to 2002 because much of eastern Australia was collapse by severe drought conditions e.g. mainly NSW, Northern detonating device of Seychelles and the Murray Valley in South Australia. Reduced farm income has effectuate using up on farm investment the like tractors, harvesters and spending in country towns when families go shopping. Living standards sink in country areas due to reduced farm income. Some nutriment prices increased like bread, pasta, biscuits and meat. Some supermarket products where unavailable or onerous to get. Water allocation was reduced for cropping, irrigation and body of 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 somewhat 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 the gross domestica! ted product, partly due to the sinewy Australian dollar that rose around 16% against the fall in States dollar. The current account shortfall 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 bewilder written is fine - especially if your count was to report facts, kinda than offer a more individual(prenominal) perspective on the effects of drought. However, it is a good bringing close together to leave a list of references so we know where you prepare the information. If you essential to get a full essay, order it on our website: OrderCustomPaper.com

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