Prominent US economist Paul Krugman called the Asian Tigers "Paper Tigers" a long time ago. But was he correct on the result, if a little mistimed? There seems to be some gloom about China, Japan, South Korea and Japan. India is slowing and Hong Kong is experiencing slower growth.
It seems likely that the major effects of transitioning these economies may now have been felt, and that growth in GDP/GSP will slow. This has happened in western economies previously.
In Australia, GSP per capita growth is a lot less than GSP/GDP overall. It may even be negative. That is why people are feeling poorer even though aggregate Australian GDP data are very strong at present.
The big dynamic though is developments in the United States. Manufacturing is being repatriated from Asia back to the US. We will see a relatively low cost, high quality economy in the US. This will give Asian countries a shock. The US will suck in capital from all over the world.
The demographic benefits that will follow for the US are losses elsewhere, including Australia if it wants to emulate Silicon Valley.
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