Economy Watch — Australia The Biggest Loser from A Slowing China, IMF

The International Monetary Fund (IMF) recently released a report regarding which nations will suffer the most loss resulting from China's slowing investment growth. According to the IMF, Australia will be the worst hit advanced economy, with only developing economies Iran, Kazakhstan, Saudi Arabia, Zambia, and Chile suffering a bigger loss.

I am not bearish on this, although China's rebalancing away from an investment-export driven economy to a consumer-services economy will result in a ripple effect around the world. But in the end the demand created by more prosperous Chinese consumers and a growing urban middle class will be a huge boost to global demand that just about everyone will profit from.

Before very long, the US will not longer be the world's market place and the US consumer, king of the roost. This will be good for everyone since the world needs rebalancing, not just China, and it is happening now, albeit not without fits and starts. Just don't listen too much to Western-trained economists, who have the wrong model.

EconMatters
Australia The Biggest Loser from A Slowing China, IMF

Economy Watch