Over the past month our Treasurer has been commenting that the downturn in the Chinese economy will likely impact the Australian economy and by implication the value of our AUD.
If so, given that we are so dependant on imports and significant depreciation of the AUD will further fuel inflation which is a worry in a contracting economy.; the ultinate being stagflation like what japan got in the early 1990s.
But back to China: It will be interesting to see how the command economy will fair particularly post Trump tariffs. IMO its likely putting strategies in place to overcome that right now as it already has done to counter the broader US economic sanctions, but I guess time will tell.
That said if the 2014 economic forecast of 4.8% GDP growth is correct, then the expected downturn may have been "greatly exaggerated"
