China’s GDP growth rate is 3.3%, which is relatively lower than the previous year’s GDP rate after COVID-19 hit the nation. It has now become the slowest pace since 2020’s Covid Crisis.
Its dip below 5.5% was the target of the Chinese Government. Now, the downfall of the Chinese economy is impacting Australia as well. The retail chains and manufacturing have lost pace over time.
20% of the youth in the country are now suffering from the unemployment crisis. Therefore, China needs to recover its economy as quickly as possible to maintain its trade facilities. China is one of the biggest economies in the world right now.
How Is The Economic Downfall Of China Impacting Australia?
There are multiple ways the economic downfall of China is impacting Australia in the wrong way. Let’s find out some of its core factors to get a better insight into it.
- China has been a two-way trading partner of Australia for the last few decades. Even there are military threats between China and Australia.
- The Australian Bureau Of Statistics report states that Australia did almost $16.3 billion of exports to China in June.
- In the same month, Australia imported goods from China worth around $8.8 billion from China.
- Australia gets the supply of 40% of the international students from China every year with better education facilities.
- China dominates the global demand for raw materials all over the globe. Therefore, you must consider these factors on your end while developing their economy.
China is the business house for many nations of the world, and the current downfall in their economy is now affecting Australia immensely. In addition, China’s military actions against Taiwan may make some of the worlds feel annoyed with China. Still, their strong economy is the backbone of many nations of the world to maintain a healthy trade relations with any country.