Australia to benefit from US/China trade war?

Advertisement

If you’re an economist and can assume away anything you like, sure, via the AFR:

The trade war between the United States and China will shave just 0.07 of a percentage point off Australia’s gross domestic product in the next two years – five times less than Canada and three times less than the global economy, new modelling by JPMorgan shows.

Australia is likely to be less affected by the trade war than other countries because of iron ore exports feeding into China’s construction sector and their potential fiscal stimulus, as well as likely cheaper imports from excess Chinese products hurt by US tariffs.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.