Asia boom changes world economy
Australia: Asia’s booming middle class is “fundamentally
changing the face of the world economy,” Australia’s central bank chief
said Wednesday, sending the local dollar soaring with hints of a rate
hike.
Reserve Bank governor Glenn Stevens said the rapid growth of China,
India and other emerging economies was driving Australia’s terms of
trade to levels about 85 percent above their 20th-century average.
“The amount of additional income accruing to production in Australia
from that is 15 percent or more of annual GDP,” the bank chief said in a
speech. Stevens said the boost reflected a “large and persistent change
in global relative prices”, warning that the “China story” went beyond
cyclical forces of supply and demand to a deeper structural shift.
AFP |