Deloitte Study Reveals That China Slump Could Cause Australian Recession

The Chinese economy has slowed down during the first 6 months of 2015 and a recent study from Deloitte Access Economics reveals that China’s economy could slump even further before the end of the year. The study confirms that in 2015, China will most likely record the lowest growth during the last 25 years.

The Deloitte study cautions economists to pay more attention to the Chinese economy instead of focusing on Greece and its possible termination from the European Union. China is the manufacturing hub of the world and the industry has felt an impact as prices have increased, orders have decreased and labor costs continue to climb.

Chris Richardson, Deloitte director stated that the current numbers on China’s economy might be a lot worse than what is being published. Richardson stated that Australia has a lot riding on the Chinese economy and as the Chinese market declines, Australia could be forced into a recession very quickly and the federal government will struggle to keep its budget commitments if China does not recover quickly.

In a statement, Chris Richardson, said “This is an economy with challenges – it’s doing surprisingly well given those challenges, so far, but you shouldn’t underestimate just how big those challenges are. It could easily be worse – much of the Australian federal budget comes with a made in China stamp and, if China continues to juggle its challenges or if the senate doesn’t play ball over the bigger dollar issues, then it will be impossible to deliver those official forecasts around the budget.”