HSBC Chief Economist Paul Bloxham reports that Australia's economy is in rebalance rather than recession. Rebalancing from mining to non-mining led growth has been made urgent by the slowdown in China and the fall in commodities. HSBC is optimistic that Australia will achieve rebalancing, although growth is likely to be below trend this year (2.5%), before heading towards 2.8% in 2014. This optimism reflects the fact that Australia's key trading partners remain the world's fastest-growing economies, the bulk of our economy lies outside mining, there is room for policymakers to cut rates and for the AUD to fall further.