© Copyright khedmeh Wall
While fiscal stimulus, relatively easy monetary policy and the rapid scaling back of lockdowns and internal border closures have helped Australia’s economy get through, and even now recover from the 2020 recession, our extensive trade and other interlinkages with China have also been vital.To get more China news, you can visit shine news official website.
China’s economy was hit hard early in 2020 when the coronavirus swept through the country and a series of strict lock downs were imposed.In the March quarter 2020, GDP in China fell a record 6.8 per cent (annualised), which was the weakest on record.
The authorities in China did the conventional thing and eased both fiscal and monetary policy as it worked to support the economy and deliver a resumption of the quite remarkable story of growth evident since the early 1990s.By March 2020, with the virus largely defeated and the easier policy kicking in GDP rebounded 3.2 per cent in the June quarter.
It rose a further 4.9 per cent in the September quarter and returned to a ‘business as usual’ 6.5 per cent in the December quarter 2020.
The early indictors for the March quarter 2021 show further unrelenting strength with GDP likely to have risen a further 6.5 per cent.Being so closely linked to one of the fastest growing countries in the world has given the Australian economy a massive boost for many years, but none more-so than now.
Australia is one of the major beneficiaries of this rebound in China and for that we should be grateful.Perhaps the most obvious link to China, particularly in the COVID-19 era where closed borders has all but eliminated Chinese tourism and university students, iron ore exports have been manna from heaven.
Not only are the volumes of iron ore exports at or near record tonnages, but the price has hit record highs around US$175 (A$226) per tonne.