International Monetary Fund and Alpha Beta

Australia: The study by economics consultancy Alpha Beta uses data from the International Monetary Fund, which estimates that Australia economy loses 0.2 per cent growth for every 1 percentage point fall in China investment growth, according to Australian Broadcasting Corporation. While countries such as Japan and Germany are affected because of their capital goods exports to China, Australia is affected because demand for iron ore and coal to make steel, as well as copper for pipes and electrical wiring, falls with lower construction activity. Map: China A new report predicts that China investment slowdown, as it moves from being an industrial to services-dominated economy, will lower Australia economic growth by 1 percentage point per annum. Lose-lose scenario for Australia Australia economy faces big challenges, whether China economic transition to services and consumption succeeds or not, argues Michael Janda. With China investment slowdown expected to run for at least five-10 years, Alpha Beta said that Australia economyis likely to face a headwind to growth of around 1 percentage point per annum, from this source alone. In Alpha Beta analysis only Chile, a major copper producer, and Zambia suffer more than Australia as China shifts to a more services and consumption-oriented economy. (news.financializer.com). As reported in the news.