Question

It is predicted that Australia’s GDP will fall below 3% in 2019; Australia’s slow growth is not only because of a slow growth in the domestic housing market but also because of China’s economic slowdown. Do you agree? Present your analysis as a report

Answer 1

Australia is more exposed to a slowdown in Chinese economic growth than most other countries

China is Australia's biggest trade partner & accounted for 30 % of overall Australian export proceeds in 2017-18.

Actually, China accounts for greater Australian trade than the U.S & Japan combined.

Iron ore & black coal mining are expected to be the sector's most at risk due to the Chinese downturn; 80% of income generated by Australia's iron ore sector comes from exports to China, while 30 % of proceeds generated by black coal mining is from Chinese exports.

Australia's education industry has also become increasingly reliant on foreign students, with Chinese pupils contributing $32 billion to the industry in 2017-18.

Australian educational establishments have gained from China's growing middle class, which has resulted in Chinese enrolments at Australian universities augmenting by at least 12 % p.a since 2002.

The tourism industry is also currently deeply reliant on the China, with 1,430,000 million Chinese tourists arriving in Australia in 2018.