We all know of the huge economic and social impact the baby boomers generation have had on modern day society. It has underpinned and driven many industries… from baby food in the 1950′s to cars, houses and employment in the 70′s and cosmetic surgery and the health industry today.
While this rise of a concentrated population group will continue to make its presence felt; it is really quite “irrelevant and insignificant” when compared with the impact the resources boom is about to unleash on us.
The demand from China now and India in the not too distant future simply cannot be ignored. A simple look at the population of the world’s three most populous nations tells a story in itself.
- People’s Republic of China 1,323,902,000
- India 1,133,037,000
- United States of America 304,117,000
- By comparison to China and India, the USA looks tiny
- In fact, if you add together the populations of USA, Russia, Japan, Germany, France, UK and Italy, you get to just over half the Chinese population
- If you added Australia’s entire population to that of China, the Chinese population would move from 1.3 billion to err… 1.3 billion
- China alone represents 20% of the world’s population; I think you get the point
- China + India + Urbanisation x 2.5 billion people = 1 Great Big Resources Boom
… and in my opinion. Queensland and Western Australia will reap the long term huge flow on from this resource boom. While their property cycles tend to alternate, Western Australia has just come to the end of a property boom and Queensland is on the next up cycle… I believe both these states will significantly out perform the others over the longer term.
Happy Investing,
Nick Lockhart
