Australias economic growth relies on Asias continuing demand for Essay - 2

Australias economic growth relies on Asias continuing demand for resources - Essay Example However, there are indications by several observers to the effect that the situation is likely to change especially with the euro zone crisis and the fact that there might be a reduction in the dependence of minerals by large Asian markets like China (Das 2012, p.2). Economic growth may refer to the relative increase in production of goods and services by a country over a definite period. Australia’s economic growth therefore means that it has to continue improving is production in the mineral sector that has been a major driver of its economy. The Asian market refers to the countries in the Asian continent that have continued to import the minerals from Australia. Consequently, the intention of this discussion is to ascertain whether Australia’s economy has largely depended on the Asian market. To further illustrate this, two listed companies that are engaged in exports will be examined. There have been several sentiments that have been put forth to suggest that the co untry has been reliant on the Asian market especially for its energy and minerals exports. To begin, the Australian economy has been on a sharp rise in decades as a result of its connection with the Chinese market. The country’s mineral sector has largely benefited from the rapidly expanding Chinese economy that has been a great consumer of mineral ores. To illustrate this fact, there are indications that about 23% of Australia’s exports go directly to the Chinese market (Das 2012, p. 3). Moreover, this figure is even likely to be reviewed upwards given that some of the exports to Asian countries are further re-exported to China. As a result, it is stated that the terms of trade between the two nations has increased to over 40% since the year 2004. Capling (2008, p. 610) points the overdependence on the Asian market to the issue of globalization of trade among nations in the Asian