No one to save us now – Who crashed the economy?

As the U.S. economy took a dive, experts said "no fear" – Australia was decoupled from the US and booming China would continue to power our economy. Yet, as consumers in the world economy cut back on purchasing goods, now China’s growth is falling at alarming rates. What now? Who is left to save Australia? Australia’s other two top export markets, Japan & South Korea are even worse. Korean’s GDP has fallen 5.4% in December and Japan’s exports have fallen 35% in the year to December.

The Sydney Morning Herald reports :

CHINA may never again power the Australian economy like it has over the past five years, posing huge risks to the local economy, ripping billions from exports, and almost certainly driving the budget into deficit.

In figures significantly worse than the Rudd Government was anticipating, China’s National Bureau of Statistics yesterday said annual growth almost halved from 13 per cent in 2007 to 6.8 per cent in the year to December – below the arbitrary 8 per cent threshold that Chinese leaders say creates risks of social instability.

» The great stall of China – The Sydney Morning Herald, 23rd January 2009.
» China’s economic growth slows sharply: official, The Australian, 22nd January 2009.

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