China 'hard landing' could trigger Australia recession: S&P
SYDNEY (AFP) - A Chinese "hard landing" translating into five per cent growth would tip Australia into recession and send unemployment skyrocketing to 10 per cent, a Standard & Poor's report warned on Thursday.
Such a rapid deceleration in Australia's major trading partner, rated as an "unlikely" scenario by S&P, could also see the mining-powered economy lose its triple-A credit rating, the agency said.
"Renewed uncertainty surrounding China's economic outlook is casting a long shadow over Australia's own economic prospects," S&P said in a new report.
"The mining investment boom appears to have peaked, and Australia's GDP growth is slowing. Meanwhile, China's economy is also decelerating and concerns of a 'hard landing' have resurfaced."