Please click here to view Shane Oliver’s thoughts on the implications for Australia from the issues impacting the Chinese economy.
Key points raised are:
- Chinese growth is running around 5% and while threats remain high – with the property downturn and tariffs – policy stimulus is likely to be enough to keep growth okay.
- However, longer term structural challenges – around excess saving, demographics and state control – will likely see growth slow to around 3% pa over the next decade.
- Australia is now less sensitive to China, but Chinese growth is likely to be enough to keep the iron ore price elevated.
