Pemalite said:
crissindahouse said:
Well, Australia is very strong in exports. Especially with raw materials. Even if the domestic market wouldn't suffer much, your exports could and if people working in an exporting industry will suffer, they will also spend less on the domestic market. Maybe not even because of a definite job loss but because of the fear to lose the job.
It's not fun to buy a new car, furniture or whatever with an uncertain future.
I guess most exports go to China because you have what they need but if they need less from you because as example Europe needs less from China then it will still hit Australia.
Sure, many other countries will be in much bigger trouble but with such a connected world economy, it won't be a fun time for any country.
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Australian chinese exports for the 2017-2018 fiscal year amounted to $123.3 Billion dollars or 6.7% of GDP.
$79.9 Billion of that was just raw Iron exports, or China accounted for about 30% of total Australian exports.
It's a significant part of our economy and it that helps drive growth but we have allot of diversification... Which is why during the Global Financial Crisis when China stopped taking in our minerals, we still didn't enter a recession, one of the few modern, developed nations to avoid that scenario... Why? Because we are a services economy, not an export or manufacturing one.
Services accounts for 62.7% of GDP and accounts for 78.8% of the employed work force.
In recent years we have been driving our economy to become the food-bowl of Asia, we are an entire sparsely-populated continent with allot of farm land... And some nations are having a shortage on various foods like meats right now, so we are in a prime position to capitalize on that.
At the moment though the Australian Government is leading the world charge for a full systemic inquiry and investigation into how the COVID-19 situation arose... China essentially tried to threaten the economic stick at us and that has probably only made us more determined to do it.
So there will likely be moves to distance ourselves economically from China going forth I think, which can only be a good thing for us, less reliance on a single nation is a wise choice.
Our economic hit I think is going to be less severe than other countries, because we could get back to economic growth sooner due to having defeated the virus and our federal government started giving $3,000 monthly payments to all the unemployed, $3,000 to business if they keep people employed, $1,500 lump sum for the aged, disabled... And our state government gave $550 to all the unemployed on top of it.
There have been exemptions provided for rent/bill relief and more.
We undertook allot of debt to do that, but it will pay off in the long term.
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