In getting us out of the financial crisis we have just been through, many western governments have effectively mortgaged the future.

The combination of governments having to repair their balance sheets, consumers rebuilding savings and constraints on credit growth due to the weak state of the banking sector will result in slower growth than before the crisis, particularly in the US, UK and Europe. This will become apparent once the strong recovery phase we are now in runs its course, probably some time next year.

Because of this, the faster growth being seen in economies like China's will appear relatively attractive and I believe a lot of money will continue to flow into the region from investors in the developed world.