Clearly, Australia is running well ahead of other western countries, with our exports representing over 6% of GDP to emerging Asia. And this is twice the level it was just six years ago.
Currently, China is taking about 25% of Australia’s exports; whereas India sits at 8%, just behind Japan at around 10%. And during 2011, the IMF is forecasting growth rates for China of 9.6%; and for India of 8.9%.
Therefore, of all the western economies, Australia looks to be extremely well placed over the next 3 to 5 years — even despite the devastating floods in Queensland and Victoria.
As you can appreciate, these will cause an initial slowdown for about three months. But after that, the massive rebuilding programs will inject a huge level of funds into both States’ economies — much like what happened after the Victorian bush fires.
You just need to look at how well Victoria has performed over the past 3 years … and across all sectors.
Bottom Line: Don’t become deflated by the current headlines. Rather, begin focusing upon the opportunities soon to emerge for Commercial property investors.