UAE & Australia

	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.