NAFTA Analysis

NAFTA AnalysisIn 2012-2013, Australian GDP increased 3.75% (Budget 2012-2013). The growth was belowtrend due to mining investment cut down, average growth of consumer expenditure as well
as continuing fiscal restraint (RBA 2013). Being impacted by the downturn of global economy,
the decline of commodity prices and the threat of international financial status which might
turn negative, in 2012, RBA decided to cut down interest rate in by 25 basis points (Janda
2012). Until 2013, the rate reached 2.5%, which was historically low (McGrath 2013). It
encouraged dwelling price and construction as well as the turnover housing market (RBA
2013). According to data from the ATO (2017), CPI of June 2012 was 100.4, below the target
set. A boost from the incline of fuel prices led to the rise of inflation rate in September
Quarter, however, a decline happened at the end of the year as a direct result of the drop of
carbon price (RBA, 2013). With a not-too-bright economy picture, Blackmore sales only rose
$65,771 from 2012 to 2013 (Blackmores 2016).
Australian GDP in 2014 climbed due to 0.4% rise in household spending, 0.8% in net exports,
however, being pulled by 0.5% drop in business investment together with 0.2% fall in
government investment (Janda 2014). In 2015, GDP slightly increased from 2.7% of 2014 to
2.5% (Tang 2016). In September quarter of 2015, the Australian inflation rate experienced a
growth of 0.5%, which was lower than expected (Cauchi 2015). Consequently, the interest
rate in 2015 was remained the same as a decision of the RBA (Parker 2015). The cut of
interest rate offers consumers more discretionary money, which has positive affect on their
spending willingness (Parker 2015). A positive economy influenced the boost by $124,855 of
Blackmore sales (Blackmores 2016).
Due to eases of the detraction from mini