It wouldn’t matter if China went into a recession

A recession in China might result in a temporary confidence shock here in Australia, but we'd get over that pretty quickly.

China’s apparent property collapse has the usual suspects talking about another hard landing again -- for what must be the 10th consecutive year. Noting how frequently these calls are made, and noting how frequently those who make these calls are wrong, my own view is that I don’t think we have anything to worry about. That is, there isn’t a great risk of China falling into a recession at this point. Even if there was it probably would not even matter that much for Australia apart from a short-lived market panic attack.


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