China is the danger

The market plunge in China is many times more important to Australia’s outlook than the Greek drama.

Summary: Large share market falls, such as the current moves in China, affect consumer and business confidence for many years. The Chinese government is trying to reverse the fall, but is not acting decisively enough. Commodity markets are falling, which puts pressure on Australian budgetary forecasts.

Key take-out: The Chinese slowdown could be greater than most economists forecast. While there are exceptions, share market falls of 30 per cent plus normally cause a steep economic decline.


SMS Code Sent…

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

If you didn't receive SMS code please

Looks you are already a member. Please enter your password to proceed

Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

Related Articles