FINANCIAL REVIEW
Sep 28 2016 at 11:45 PM
Updated Sep 28 2016 at 11:45 PM
Australia has just five years to prepare for risks from China debt: Morrison
Treasurer Scott Morrison says Australia has five years to ensure that it increases its resilience and "we need to do that by getting the budget back into balance". Nic Walker
Australia has five years to make its budget more resilient to a potential economic shock from booming debt levels in China, Treasurer Scott Morrison says.
His warnings came after the release of the latest World Economic Outlook from the International Monetary Fund on Wednesday, which said China must allow its economy to slow to stop a "disorderly deleveraging", triggering contagion in emerging markets, and hitting asset prices in advanced economies.
The IMF said China's financial links with the rest of the world were now sufficient for a major shock to affect global stock prices, debt markets and currencies, particularly for Beijing's major trading partners such as Australia.
READ MORE: http://www.afr.com/news/australia-has-just-five-years-to-prepare-for-risks-from-china-debt-morrison-20160928-grqdmi
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