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Resource demand from China lifts Australia

Resource demand from China lifts Australia article image
China's demand for Australian commodities has helped cushion our economy from the global recession, says Reserve Bank governor Glenn Stevens. Their purchases over the past 12 months has supported Australia's exports. Stevens said he was in the "optimistic camp" on China because of indicators late last year showing that Chinese production was once again starting to pick up. "That certainly has continued with a vengeance since then and actually in the June quarter the Chinese economy, we estimate, grew by four per cent in the quarter," he said. "Perhaps the growth in China's demand will falter. They can't keep that up, but that is a pretty strong result and it has affected [our] exports." According to Philip Lowe, the Reserve Bank's assistant governor of financial systems, China's demand for Australian commodities has risen almost six-fold over the past decade, from comprising four percent of exports, to 23 percent more recently. Lowe said it was remarkable that "Australia has been able to sell more goods to the world in which global trade has collapsed and industrial production has collapsed. There's a number of reasons for that, but the main one is China".

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