These changes will act to lessen the extent of the likely slowdown in Australia’s economy, even as global forces work the other way. The Reserve Bank will publish its next update on the economic outlook on 10 November, so I will not say any more about that today. I shall finish with the question of what trends will be of importance beyond that horizon.
As I have said before, the emergence of China is not complete and has many years to run. Right now, China’s economy is slowing. This is a reminder that China’s economy has cycles, like economies everywhere. But even if it slows a lot, it will pick up again in due course and will probably grow pretty strongly, on average, over many years.