The document provides an economic update from Craig James, Chief Economist at CommSec. It summarizes that the global economy is in a healing process led by growth in China, the US is recovering but China's growth is critical, and Australia's economy is benefitting from China's industrialization through demand for resources. CommSec forecasts continued economic growth in Australia around 3% in 2010, inflation rising to 2.75% by year-end, unemployment falling to 4.75%, and the stock market and Australian dollar trending higher by December 2010.