Sunday, 2 April 2017

Japan, Australia, Netherlands - GDP grew without recession for 25 years and more


- Australia GDP grew for 25 years because of its resources.

- Netherlands's GDP grew for over 25 years after oil was discovered offshore.

- So, natural resources can help drive GDP growth for a long time.

- Australia grew for the past 25 years primarily due to exports to China. In 1991, exports to China were 2% of Australia's total exports. In 2017, it was 33%.

- Of Australia's GDP growth of 3.5% , 2% is accounted for due to population growth and 1.5% due to increase in resources investment.

Summary: India's GDP can also grow for a very very long time because of the huge population and increasing consumption.

https://www.bloomberg.com/news/articles/2017-03-30/as-australia-eyes-victory-on-growth-its-spoils-look-bittersweet

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