Craig James from Commsec delivered his predictions for the economy last week over breakfast hosted by Sullivan Dewing.  He advised if anyone asked you about the economy you should give the answer "China".  Why?  Because the ascent of China is the greatest change to happen in the Australian economic landscape in the next decade.  China's growth is now equal to where Japan was in the early 1970s.  With only 15 cars per 100 households (versus the 150 cars per 100 households in Australia) China has huge capacity for growth.  And guess what ... a lot of it is coming our way.

Craig also confirmed retailers are struggling mainly because our household saving levels are the highest in 30 years.  A recent survey published by ING reported that people are saving because of the higher cost of living but also due to concerns about job security and not surprising because they want to travel while the exchange rate is so good for us to travel overseas.

If you would like to receive the notes from Craig’s presentation leave a comment.  We would be happy to share & discuss his predictions further.