Australia's No. 1 Economic Worry: China's Slowdown Mar 12
Standard & Poors, March 2012
Abstract
The European sovereign debt crisis has been capturing front-page headlines in the financial news media. However, for countries highly dependent on the world's growth engine of China--like Australia--a more pertinent concern of institutional investors is the slowdown of the Chinese economy. Indeed, an acute deceleration of China's economy would have significant repercussions for the export-reliant Asia-Pacific economies, including commodity-exporting Australia. Australia has, through a combination of luck and effort, managed to survive the Western world's ongoing financial crisis relatively unscathed. However, the "lucky country" has relied heavily on the continuing expansion of the Chinese economic dragon. About half of Australia's mineral exports, by value, is shipped to China. China's voracious appetite for commodity imports has been shoring up the Australian...
Companies mentioned in this report are: Australia (Commonwealth of) (Unsolicited Ratings)
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
Australia (Commonwealth of) (Unsolicited Ratings)
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