Australian and Japanese Economy Comparison Economics Essay

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Comparison of Australian and Japanese Economies

Australian Economy vs. Japanese Economy
Australia’s and Japan’s economies are both advanced industrialised or developed economies according to the World Bank classifications. Japan’s population was estimated to be 126 500 581 people at the start of 2015 and is the 3rd largest economy in the world nominal by Gross Domestic Product (GDP). Australia’s population is significantly smaller with only 23,776,892 people(ABS Population Clock, 2015). Australia’s currency is the Australian Dollar ($) and Japan’s currency is the Japanese Yen (¥). This comparison examines the: economic growth rate; quality of life; employment; unemployment; distribution of income and the role of the government in: health; educations and social welfare in Australia and Japan. By doing so it then identifies the differences and similarities to determine how similar the two economies really are.
Japan vs. Australia

2004
2005
2012
2013
Japan
GNI per capita, PPP (current international $)
29,930.0
31,150.0
36,540.0
37,790.0
Japan
Population, total (in millions)
127.8
127.8
127.6
127.3
Japan
GDP (current US$) (in millions)
4,655,803.1
4,571,867.0
5,954,476.6
4,919,563.1
Japan
GDP growth (annual %)
2.4
1.3
1.8
1.6
Japan
Life expectancy at birth, total (years)
82.0
81.9
83.1

World Bank, 2013, (world development indicators)

2004
2005
2012
2013
Australia
GNI per capita, PPP (current international $)
30,420.0
31,360.0
41,570.0
42,450.0
Australia
Population, total (in millions)
20.1
20.4
22.7
23.1
Australia
GDP (current US$) (in millions)
612,871.7
693,338.6
1,534,425.9
1,560,372.5
Australia
GDP growth (annual %)
4.2
3.2
3.7
2.5
Australia
Life expectancy at birth, total (years)
80.5
80.8
82.1

World Bank, 2013, (world development indicators)

Economic Growth and Quality of Life:
Economic Growth – Australia has recorded high rates of GDP growth over the last 5 years. Its success is based upon an abundance in mineral and agricultural resources. This allows for substantial amounts of exports to other nations. Australia recorded an export value of $301.5 billion in 2012-13(Trade Minister.com, 2013).

Comparably, Japan has experienced mixed rates of GDP growth over the last 5 years. Recently Japan recorded a recession i.e. (two quarterly contractions) due to an aging population failing to respond to stimulus measures put in place to prevent a recession; and a government consumption tax to reduce government debt.

We can see that the two countries have both done most of their growing as industrialised economies but differ in the stage they are currently in due to the spending of their government and differing demographics.

Quality of Life – Australia’s quality of life is extremely high. Its Human Development Index (HDI) in 2013 was 0.933, ranking it second in the world (Human Development Reports, 2013). The life expectancy at birth is 82.5 years. Australia’s mean years of schooling has risen 0.4% since 1980 and its total HDI has risen 10% since 1980. This indicates an overall improvement in quality of life over the last 30 years.

Similarly Japan also has an extremely high quality of life. Its HDI is 0.890 ranking it 17th in the world. Japan’s life expectancy is one of three countries that are higher than Australia’s at 83.6 years. This has risen from 76.2 in1980. Japans HDI has also increased by over 10% since 1980, going from 0.772 to 0.890, indicating a rise in general quality of life too(United Nations Development Programme Reports, 2012-13).

Japan Australia
Population
127,103,388
22,507,617
Life Expectancy
84.460 years
82.070 years
Human Development Index
0.956
0.965
GDP per capita (2014)
$37,100 US
$43,000 US
Literacy Rate
99%
99%
Aneki.Com, Japan vs. Australia, 2015

Both countries enjoy a high quality of life mainly due to their developed status, government spending and due to their resources they can export to other countries which ultimately brings money…