There were many remaining risks facing the Australian economy not least of which was the possibility of fluctuating Chinese investment, Mr Fraser said during his opening speech to the March Senate estimates.
“As I have said to this committee in the past, the possibility of a sharp adjustment in China’s economy could have flow-on impacts for Australia’s economy, particularly our export industries,” Mr Fraser said.
“Another factor that continues to dampen expectations of growth has been the subdued growth in business investment that has been a feature of the global recovery,” he added.
The geopolitical consequences of the US Trump administration, and increasing protectionism around the world, continue to threaten trade.
“At this stage, it is difficult to gauge the overall impact that the new Administration’s policies will directly have on the US economy [but] measures that impact trade have the greatest potential to impact global growth, and of particular importance to Australia will be how potential trade measures impact China, our largest trading partner,” Mr Fraser said.
Given our dependence on trade and in-bound investment, Mr Fraser said it remains vital that Australia pushes for free trade where it can.
“The use of temporary trade barriers have been increasing internationally, with such barriers affecting 2.5 per cent of traded products, compared to 1.7 per cent in 2009 and 0.5 per cent in 1990,” he said.
“It’s imperative that we continue to advocate for an open global trading system in order to ensure the benefits of global growth continue to flow through to higher living standards in Australia.”
