A new report predicts that China's investment slowdown, as it moves from being an industrial to services-dominated economy, will lower Australia's economic growth by 1 percentage point per annum.
The study by economics consultancy AlphaBeta uses data from the International Monetary Fund, which estimates that Australia's economy loses 0.2 per cent growth for every 1 percentage point fall in China's investment growth.
While countries such as Japan and Germany are affected because of their capital goods exports to China, Australia is affected because demand for iron ore and coal to make steel, as well as copper for pipes and electrical wiring, falls with lower construction activity.