Effects Of China s Fiscal For The Australian Economy

EXTENDED ESSAY What are the effects of China’s recent economic slowdown in GDP for the Australian economy? Word Count ABSTRACT This essay looks to answer the question: What are the effects of China’s recent economic slowdown in GDP for the Australian economy? The intention is to look at China’s recent reduction in GDP rate of growth and find out if there are any significant negative implications for the Australian economy, and further investigate fears in the media that the slowdown may eventually prove catastrophic for Australia. In order to do this I analysed information about Sino-Australian economic relations and Australia’s economy over the last few decades to see if China’s slowdown had/will have any implications†¦show more content†¦At the investigation’s end, I concluded the slowdown was of little significance to the Australian economy. This was partly due to the over-exaggeration of the slowdown by the media, who failed to recognise that China’s growth is still large. Combined with Australia’s diversified exports and strong international trad e relations, I concluded Australia does not overly rely on China as suggested by the media, and should continue to grow in the long run at a healthy rate regardless of the slowdown. ACKNOWLEDGMENTS I would like to thank Mr Jeremy Mittson for his patience in helping me with this Extended Essay. Despite many times of difficulty throughout this process, he has been there to put me on the right track in completing this task, for which I am very thankful. CONTENTS ABSTRACT #2 ACKNOWLEDGEMENTS #3 INTRODUCTION #5 PART ONE: â€Å"What is GDP?† #6 PART TWO: â€Å"How is the Australian Economy Influenced by China?† #8 PART THREE: â€Å"What are the short-term effects of the slowdown?† #15 PART FOUR: â€Å"What is the long-term, overall impact of the slowdown?† #17 CONCLUSION #26 BIBLIOGRAPHY #27 INTRODUCTION Recently, as China has shown a reduction in its rate of GDP growth there have been many fears this could have negative implications for the Australian economy. Lord Mervyn King, a former Bank of England governor, says that a slowdown in China