While, this is generally a good news story, both China and India face significant challenges over the years ahead. In China, the authorities face the difficult task of rebalancing growth away from exports and investment to domestic consumption.
And in India, the burden of red-tape remains a major issue and ways need to be found to improve the country’s infrastructure if the economy’s potential is to be unlocked. It would be unrealistic to assume that the growth paths in these countries will be without bumps, perhaps large ones. And these bumps will have an impact upon Australia.