Australia's Treasurer Jim Chalmers expressed worry over signs of weakness in the Chinese economy and how it could affect Australia.
In a television interview on Sunday, Chalmers said he shares "substantial concerns" about softness seen in recent months in the Chinese economy due to its implications for Australia. China is Australia's top trading partner with annual trade worth A$285 billion.
The Treasurer pointed to China dealing with slower growth, deflation risks, property sector concerns and slowing exports. He said the Australian government is closely monitoring developments in China.
Chalmers believes Australia's economic growth will be "substantially weaker" as a result of China's slowdown coupled with interest rate hikes by the Reserve Bank of Australia to rein in inflation.
His comments come as China's recovery sputters amid a property slump, weak consumer spending and falling credit growth. Analysts have been downgrading growth forecasts for China's economy, which is the second largest in the world.
The Treasurer also noted the overall direction for Australia's economy is toward weakness, after first quarter GDP rose just 0.2% - its slowest in 1-1/2 years due to high prices and rate hikes weighing on consumer spending.
