Annual Macroeconomic Snapshot • 1980s • October 1987 sharemarket crash
The Australian Economy in 1987
In 1987, Australia’s Estimated Resident Population stood at 16,394,641, real GDP growth averaged 5.0%, annual CPI inflation averaged 8.5% and the unemployment rate averaged 8.1%.
- • The RBA overnight/target cash rate ended 1987 at 11.30%, while 10-year Australian Government bond yields averaged 13.19%.
- • The Australian Dollar averaged US$0.7002 against the US Dollar during 1987.
- • Key macroeconomic milestone: October 1987 sharemarket crash.
1987 Economic Indicators at a Glance
% p.a.
Rank #17 of 104 yrs
Inflation (CPI) in 1987
8.5% Long-run avg: 4.0%
-0.6 pp %
Rank #11 of 77 yrs
Unemployment Rate in 1987
8.1% Long-run avg: 4.8%
0.0 pp % p.a.
Rank #16 of 77 yrs
Real GDP Growth in 1987
5.0% Long-run avg: 3.4%
+2.9 pp Persons
Rank #40 of 126 yrs
Population in 1987
16.39M Long-run avg: 12,689,752
+255,872 % p.a.
Rank #57 of 125 yrs
Population Growth in 1987
1.59% Long-run avg: 1.61%
+0.09 pp % p.a.
Rank #8 of 78 yrs
10-Year Bond Yield in 1987
13.19% Long-run avg: 6.63%
-0.23 pp % p.a.
Rank #9 of 51 yrs
RBA Cash Rate in 1987
11.30% Long-run avg: 6.48%
-4.20 pp US$ per A$1
Rank #52 of 67 yrs
AUD/USD Exchange Rate in 1987
US$0.7002 Long-run avg: US$0.8921
+0.0317 % of disposable income
Rank #33 of 68 yrs
Household Saving Ratio in 1987
8.1% Long-run avg: 9.0%
-2.7 pp % of GDP
Rank #36 of 68 yrs
Trade Balance (% GDP) in 1987
-0.9% Long-run avg: -0.5%
+1.6 pp '000 dwellings / month
Rank #53 of 62 yrs
Dwelling Approvals in 1987
117.8k Long-run avg: 152.7
+5.1 % p.a.
Wage Growth (WPI) in 1987
N/A Series commenced later
1987 in Context: Preceding & Following Years (1982–1992)
10-year window around 1987 showing how key indicators evolved before and after