China’s the other big key

WHAT matters for our economy – for jobs, business, tourism, tax and much more, and for crossover points with investments like property – is what happens more directly to our north, in China.

The US remains the single most important economy in and for the global economy. But China remains the single most important economy – indeed, more now than it’s ever been – for our local economy. In 2009 China was the biggest factor in saving us from joining the rest of the developed world in the most serious recession since the Great Depression of the 1930s.

Followed by the RBA slashing interest rates and then the Rudd government’s fiscal pumppriming.

China is now even more important to our economy.

Back then it wasn’t pouring money into property and apartments. Back then it wasn’t our biggest source of tourists.

Yet there has never been greater uncertainty about where the Chinese economy and China more broadly, is headed.

There’s little point trying to analyse the “statistics”; even less in listening to the “experts” – there are none.

Just watch the money: exports and imports, tourists, gamblers and property.