Australia's growing links to Asia: Powering growth
• Australia’s economic relationship with Asia continues to deepen
• Trade and population links between the two are already strong and getting stronger
• Financial ties are more limited but are expected to grow as Asia’s financial system matures
Australia’s pivot to Asia
Strong ties to Asia have been a key driver of Australia’s relative economic success in recent years. In our view, this
story is not over yet. Trade links are still growing, with a further ramp-up in exports of iron ore, coal and liquified
natural gas on its way, and we also expect rising demand for Australian food, tourism and education as Asia’s middle
class incomes rise. Australia’s population is becoming more Asia-integrated due to strong migrant flows, which should
help to facilitate greater trade and financial ties. While direct financial linkages to Asia are still small, we expect
them to strengthen as Asia’s financial system matures. Growing links to the fast-growing Asian economies are a key
reason for our continued optimism about Australia’s growth prospects.
Did you know that...
• In the past six years, Australia’s economy has grown 16%. By comparison, the US has grown 6%, while the British
economy has not grown at all and Europe’s is 2% smaller. China's economy has grown by 65% ... or that ...
• ... no other OECD economy has a larger export exposure to Asia than Australia ... or that ...
• ... over the next six years the value of iron ore exports is expected to rise 54%, coal by 41% and LNG by 330%,
as newly built capacity comes on line ... but that's not all ...
• ...Chinese tourist visits to Australia have increased by 110% in the past four years, in a trend that is set to
continue ...
ENDS