UAE
|
Australia
|
|
Low unemployment
|
||
Unemployment rate (% of Labor Force) 2011
|
4.6%
|
5.2%
|
stable prices
|
||
Consumer Prices (CPI Index) 2010
|
114.7
|
6401.0
|
Inflation % 2011
|
0.90%
|
3.4%
|
economic growth
|
||
GDP (USD billions) 2011
|
360.1
|
6,400
|
GDP per capita (USD) 2011
|
48,800
|
66,371
|
GDP real growth rate (% year) 2010
|
4.9%
|
1.8%
|
balance of trade
|
||
exports 2011 (USD Billion)
|
281.6
|
314,175
|
Imports 2011 (USD billions)
|
202.1
|
299,800
|
In reference to
the data above, we can compare the U.A.E to Jordan in regards to the four
macroeconomic objectives, which are low unemployment rate, stable prices,
economic growth, and balance of trade.
Low unemployment:
UAE’s unemployment rate was 4.6% as of 2011, meaning that
4.6% of people capable of working are not working. This could be for various
reasons such as sufficient wealth, laziness, incapable or just focusing on
something else. However, on the other hand Australia’s unemployment rate was
5.2%. Although Australia’s unemployment Is higher, one has to understand the
market and population to which these numbers are coming from. As an example,
Australia’s population is almost 22 million, whereas UAE’s population is about
8 million only. So the 5% in Australian unemployment may as well equal 20% of
UAE unemployment. Furthermore, the market in Australia is highly dependent on
agriculture and other commodities where seasons and mines play a vital role.
UAE on the other hand is mostly based upon retail and whole stock sale.
Stable prices:
Stable prices are usually measured by the consumer price
index or what is known as CPI and inflation.
The CPI measures the change in the price levels of a basket of products
that normal households buy. The CPI in the UAE is 114.7 whereas in Australia it
reaches 6401. Its huge difference but then again, Australia has a bigger
economy and market. UAE has a good inflation rate of 0.9%, where as Australia
has a 3.4% inflation rate. Although the size of the economy does play a big
part in the inflation rate, so does the currency of the country. UAE’s AED is
pegged and thus less volatile to changes.
Economic growth:
Economic growth is the growth of the country based upon its
production and services. Its made up of GDP, GDP per capita and the GDP growth.
The UAE has a GDP of $360 billion , where as Australia has one of $6.4
trillion. This huge gap is due to the reason that Australia has a much larger
economy and is diverse in its earnings, unlike UAE with hospitality and oil
being main income.
Balance of trade:
Balance of trade, or otherwise known as net import and
export, calculates the connection and total of goods and services important and
exported by the country. If the import is greater than export we have a surplus.
And if the export is greater than import, we will have a deficit. UAE has
exports of 281.6 billion and an import of 202. As compared with Australia,
which although with a stronger economy has almost the same export of $314,175
billion. The reason behind this is that the UAE is a largely oil dominated
country, which is highly considered as scarce now days.
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