Australia will suffer more than others from slowing the Chinese economy

Today's Australia is happy to boast of the AAA sovereign rating before the world community, however, the main engine of its economy - the demand from China - begins to junk. Bloomberg writes about this today.

Not a single country is more vulnerable to a decline in China as Australia rich in natural resources. The boom in the production of fossil production, which until recently, the growth of the economy of this country is approaching a cliff into the gap of economic risks.

The Australian credit market and the borrowing market are today a large soap bubble, which threatens to burst after an even more huge bubble of unsecured obligations in China.

There is something hyperbolic in such reasoning, but highly developed Australia can pay dearly for its addiction to the developing economy. The sharply increased export of minerals led to atrophy of other most important sectors of the economy. A precedent of a two -speed economy has been created on the continent today - while the ore and coal Kuvinland, rich in the deposits of ore and coal development, was far ahead, the rest of Australia was hopelessly lagging behind.

Nevertheless, until the end of this year, Australia will increase the export of iron ore products compared to 2012 by another 16 percent, to 571 million tons, due to the continuing growth and expansion of the capacities of the Australian mining enterprises Rio Tinto, BHP Billiton and Fortescue.

If the soap bubble, inflated by fake reports on the economic growth of China, will not burst, then in 2014 Australia will increase iron ore exports by another 16 percent, to 664 million tons. Such a forecast is contained in the quarterly report of the Australian Bureau of Resources and Energy Economics (Bree), published on June 26.