And the nation’s overall capital stock (including both private and public capital) has been expanding at around 5 per cent per annum, the fastest rate of increase since the early 1970s. In contrast, in some other developed economies, the level of investment has barely been enough to offset the depreciation of the existing capital stock. The reasons for this difference are well understood.
Most of the advanced economies have been dealing with the fallout of the severe banking and debt problems of the late 2000s. In contrast, we avoided these problems and have been benefiting from the growth in Asia.