http://www.abc.net.au/news/stories/2009/01/20/2469595.htm?section=justin
China's growth slump to hurt Australia: Rudd
Posted Tue Jan 20, 2009 12:31am AEDT
Updated Tue Jan 20, 2009 12:39am AEDT
The Federal Government is grappling with a greater-than-expected fall in economic growth in China.
In a speech last night, Prime Minister Kevin Rudd said China's economy will have a major influence on how far Australia's economy slides.
China's slump in domestic demand has seen commodity prices fall, hurting Australian businesses and government revenue.
"China has been hit much harder than forecasters had predicted," Mr Rudd said.
"Its growth has slowed sharply - from 12 per cent in 2007 to 8.5 per cent last year. Its manufacturing sector - which is 40 per cent of its GDP - has been contracting for five months.
"Because China takes 15 per cent of our exports, its slowdown will affect Australia."
Treasurer Wayne Swan says his department will be paying particular attention to the Chinese situation.
"A cut in Chinese growth of that magnitude would be very significant for the Chinese economy domestically, and quite significant in terms of the forward outlook for commodity prices and most certainly, growth in this region," he said.
The Government is assessing economic data to decide whether to develop another economic stimulus package.
China's growth slump to hurt Australia: Rudd
Posted Tue Jan 20, 2009 12:31am AEDT
Updated Tue Jan 20, 2009 12:39am AEDT
The Federal Government is grappling with a greater-than-expected fall in economic growth in China.
In a speech last night, Prime Minister Kevin Rudd said China's economy will have a major influence on how far Australia's economy slides.
China's slump in domestic demand has seen commodity prices fall, hurting Australian businesses and government revenue.
"China has been hit much harder than forecasters had predicted," Mr Rudd said.
"Its growth has slowed sharply - from 12 per cent in 2007 to 8.5 per cent last year. Its manufacturing sector - which is 40 per cent of its GDP - has been contracting for five months.
"Because China takes 15 per cent of our exports, its slowdown will affect Australia."
Treasurer Wayne Swan says his department will be paying particular attention to the Chinese situation.
"A cut in Chinese growth of that magnitude would be very significant for the Chinese economy domestically, and quite significant in terms of the forward outlook for commodity prices and most certainly, growth in this region," he said.
The Government is assessing economic data to decide whether to develop another economic stimulus package.
