Editor's Blog

AUSTRALIA'S GDP is forecast to double to almost $3.5 trillion in the next 15 years, according to a report from the Centre for Economics and Business Research (CERB)

China and India are expected to race up to the top 3 spots (with the United States in second place) as the world largest economies in the near future says the report. The current top western economies are also expected to give way to the rising economies of South America and East Asia.

This tremendous growth is expected to fuel demand for Australian exports. Analysts accordingly expect that such a massive demand will necessarily require a larger Australian population which must either be fuelled by higher fertility rates or immigration.

"The future driving force will be continued growth in the population, fuelled by a combination of a higher fertility rate and immigration rate." states the report.

The latest World Economic League Table, released by the CERB, showed the nation's 2013 GDP of $1.66 trillion would jump to $3.48 trillion by 2028. Although Australia’s overall position will slip a few notches as the likes of Mexico and South Korea edge upwards, AMP Capital chief economist Shane Oliver said the slide was nothing to fear.

"It's not a trend Australia should be ashamed about," he said. "It's not that our country is getting poorer. Korea and Mexico are growing at double the rate of Australia as they have much bigger populations. “

As the mining wave continues to deliver prosperity for Australia, albeit at a declining rate, analysts state that future growth will be driven by agribusiness, gas, tourism, international education and wealth management.