Australia is classified as a high-income country by the World Bank. In 2021, it had a Gross Domestic Product of 1.5 trillion dollars and a GDP per capita of 59,900 dollars.1 Being a developed country, Australia has faced volatility in terms of its unemployment rates and inflation rates. However, despite such volatility, Australia has always had inflation on the lower side. It might sound like a utopian situation to many Indians, but in fact, it has had many worries in Australia. The Reserve Bank of Australia (RBA) set a target inflation band of 2-3% around the 1990s In recent years, the inflation rate has undershot this target. Low inflation leads to demand subsiding, and risks the economy slipping into a recession, a problem being gravely faced by Japan.
Keywords: GDP, World Bank, RBA, Economy, Inflation.
