Treasurer Chris Bowen on Thursday insisted an end to the Chinese resources boom was not a crisis for Australia’s mining-driven economy, but admitted it was a challenge.
Australia’s economy is facing a difficult transition from its reliance on commodities as China’s growth slows and the resources investment boom peaks.
But on a day that ratings agency Standard & Poor’s maintained its top-notch AAA sovereign credit rating for Australia with a stable outlook, Bowen said it was achievable with good governance.
“This is not a crisis. But it is a challenge,” he told the national press club.
“The reality is that China is entering a new phase of its economic growth.
“What Chinese authorities are striving to achieve is stable, long-term single-digit growth. And that is the right approach. It’s in Australia’s national interests for China to go down this path.”
Australia’s economy grew at a slower-than-expected rate in the first three months of the year, expanding 0.6 per cent on-quarter and 2.5 per cent on-year suggesting the decade-long mining investment boom was unwinding