China is our largest export market, and Australia is the largest supplier of bulk commodities to China, so our economies are becoming very intertwined. Various people, including Glenn Stevens and Phil Lowe from the Reserve Bank and Ken Henry from the Treasury, have recently spoken about the implications of this for the Australian economy in the medium term.
This topic is also attracting considerable attention in the media. Three themes emerge when people look at these issues. The first is that Australia will most likely face an extended period of prosperity in the years ahead. Some of this will come about through strong real economic growth, due, for example, to increased investment and higher export volumes.