While the Budget factored in a decline in Australias terms of trade, Essay - 1

While the Budget factored in a decline in Australias terms of trade, the fall in global commodity prices over recent months has been larger than anticipated - Essay Example The recent natural disasters in Australia, Japan and New Zealand also reduce Australia’s economic growth in early 2011. Combined, these natural disasters detracted around 75%of a percentage point from Australia’s economic growth in 2010-11, the real GDP contracted in the March quarter of that year. While it take many years for the affected communities to recover from these tragic events, the negative impacts on Australia’s economic growth was great, with the resumption of activity and commencement of reconstruction that added to real GDP growth from 2011-12. There have been major changes in term of both structure and trend in Australian trade. Structural change has been going on from as far as 19th centuries and it is not new to anyone. It is one of the ongoing features of Australian economies. In the past years one of the most common changes is that of the service sector, which has accounted for a steadily increasing share of both output and employment. In the early years of 1950s more than of the Australian workforce were employed in the service sector, currently the rate stood at over 75% and the trend seems to be increasing. On the contrary the workforce working in both manufacturing and agricultural sector has steadily