Australia has been one of the biggest beneficiaries of China’s longstanding boom – riding the coat-tails of the Asian giant to record 25 years of continuous growth in its GDP. Even after the 2008 global financial crisis, Australia smartly steered its economy toward services exports, a task in which resources-rich rivals such as Brazil have managed poorly. Australia has led developed countries in growth too, growing 24% in the eight years since, compared to the U.S.’ 12% and the U.K.’s 8%.
However, in order to sustain the growth, Australia will need to carry out economic reforms, last undertaken in the 1990s, to capitalize on China’s shifts toward a consumption-driven growth model, HSBC Global Research said in a report. It also needs to leverage a free trade deal with China, signed in 2015, in order to sustain the growth.
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