Despite gloomy talk about slowing economic growth, Asia has continued to grow strongly, and the IMF has forecast this will continue this year and next.
Asia is still by far the most dynamic region in the world, accounting for 40% of world GDP but nearly two-thirds of global growth. Look, too, at the red bars (graph below) showing China's contribution to global growth. Take off the unsustainable growth burst which followed the massive stimulus in 2009, and China's contribution to global growth remains much the same over the 2008-2018 decade (including the projection period).
The growth rate might be slowing a tad, but China's increased bulk of global GDP means that its contribution to global economic growth is undiminished.
Of course there are risks to this outlook. To forecast that India's growth will continue at 7.5% (the fastest in the region and based on debatable GDP figures) is a bold call. As well, the Fund itself frets about financial vulnerabilities in China, especially in relation to a housing sector coming off the boil. Japan might need a bit of luck to make the 1-1.2% growth foreseen by the IMF.
All that said, where would you rather be doing business – in Australia next to the most dynamic region in the world or in Europe, waiting for the next chapter in the unfolding Greek tragedy?