Treasurer Wayne Swan has warned China’s slumping economy could have a major affect on the Australian budget, in terms of deficit and growth.
The Treasurer said China’s growth report “provides stark evidence of the impact of the global recession on the mining boom, which supercharged Australia’s economy in recent years”.
According to Swan, as a major trading partner for Australia, China’s slumping economy will affect our own “forecasts for growth and revenue in the budget will be substantially worse.”
The latest trade figures show China has been one of the strongest supports to the Australian economy, with exports there hitting records in the first two months of the year. However, China yesterday reported its lowest growth rate in 15 years.
Wayne Swan is now expected to forecast a recession next year while the budget deficit could climb to $50 billion.
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