For years, the narrative surrounding China has been one of remarkable economic success.
However, the country’s once-unstoppable economic engines showed signs of faltering last month.
China’s economy is slowing down, why?
So, has over-spending, over-consuming, and poor investment finally caught up with Beijing? And should Australia be worried about it?
On Tuesday morning’s episode of The Briefing, we sat down with Dr Angela Jackson, lead economist at Impact Economics and Policy, to analyse the current state of China’s economy and its implications for Australia.
In recent weeks, Beijing has unveiled a series of economic stimulus measures aimed at stabilising its slowing economy.
“The shift from an export-driven economy to one that prioritises domestic consumption could significantly affect Australia,” Dr Jackson said.
If Chinese consumers buy fewer Australian resources, it may lead to reduced demand for commodities like iron ore and coal, which are crucial to the Australian economy.
Recent reports indicate that China’s GDP growth is struggling to meet the government’s 5 per cent target, raising alarm bells for Australian businesses.
“The Chinese economy has started to slow, its population has begun to age, and issues have emerged in its residential property market in particular,” she added.
Dr Jackson also highlighted the importance of China’s economy to Australia’s overall growth.
“It (China) accounts for around 30 per cent of our economic growth. That’s a significant contribution to the overall health of the Australian economy.”
Some experts suggest that Australia should consider diversifying its trade partnerships, exploring markets in Southeast Asia and the Pacific to mitigate risks tied to China’s economic health.
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