How the boom and bust of the Chinese economy affects other countries.
"Australia’s 20-year-long economic party, funded by China, may be drawing to a close, with consequences for federal and state budgets, superannuation returns and living standards generally.
The iron ore price is the most obvious pointer to China’s declining demand for Australia’s raw materials: it has come down from an extraordinary peak of US$144 a tonne at the beginning of January to a spot price of US$92 this month, and the fall is expected to continue.
It is amazing that it has remained high for as long as it has, given that the construction of housing in China—traditionally accounting for 30 percent of its domestic steel use—has turned down since the biggest builder, Evergrande, struck financial trouble in 2021. ..."
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