Australia rides Asia’s economic growth
Australia will continue to ride Asia’s “stellar growth”, predicts the latest HSBC Research report, Asian Economics First Quarter 2010: They say it may get bumpy.
Written by Frederic Neumann and Robert Prior-Wandesforde, the report’s overview of Australia’s economic performance is glowing: “The Australian economy has elegantly side-stepped the global slump with a mixture of decisive policy action and the helpful exposure to fast-growing emerging economies.”
The outlook is also rosy, with data pointing to further gains, including sustaining house prices and an economy capable of growing without stimulus. Moreover, Australia holds beneficial links with Asia, which they say “should have enough fuel to overcome the lure of gravity” after favourable policies and government stimulus fades.
“Asia’s economies have entered a sustained growth cycle, and even the withdrawal of official stimulus measures will do no harm,” says the report.
And although inflation may be a problem in the region later this year, “we expect the region, excluding Japan, to grow by 7.8 percent, with China and India leading the way,” the two conclude.
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