Australian CFOs, economists confident in China's financial outlook

Xinhua | Updated: 2017-07-14 14:12

SYDNEY — A survey of chief financial officers, in Australia has found this week that confidence in the global economic outlook is still riding high, despite the many challenges present around the world.

The Deloitte Access Economics report stated that a greater number of Australian business leaders are positive on the strength of the Chinese economy, and its subsequent positive impact on the fortunes of the Australian economy.

"The strong performance of the Chinese economy has boosted optimism among Australian CFOs, who rate it as having a positive impact, net plus 25 percent, on the Australian economy in the first half of 2017," the report said.

"This is up from the smaller positive impact, net plus 7 percent, recorded in the second half of 2016."

Deloitte CFO program leader Stephen Gustafson, one of the authors of the report, said over 40 percent of those surveyed were more optimistic than six months ago, due to the "higher rates of growth in Asia stimulating demand for our (Australian) exports."

"And with a more positive global outlook, and strong demand out of China providing favorable tailwinds for Australian business conditions, we hope to see both confidence and optimism remain in net positive territory," Gustafson said.

With the Chinese trade figures for June released on Thursday, Kelvin Lam, an economist at HSBC, told Xinhua in a statement that the figures were strong for the month, and "higher than industry expectations".

"Machinery & electronics and high-tech products continued to be the main drivers for exports, while resilient demand for capital goods and crude oil were behind the strength in imports," Lam said.

"In all, we think the industrial upgrading in China and stronger global demand will support export growth in the coming quarters."

This data out of China was also "encouraging" for the Australian economy, according to chief economist at the Commonwealth Bank Craig James, who told Xinhua that the figures that show June exports up by 11.3 percent year-on-year, and imports up 17.2 percent, are good news for Australia.

"The latest Chinese data is encouraging with both exports and imports well up on a year ago and the trade surplus expanding as well as beating forecasts," James said.

"China is Australia's largest trading partner and a strong Chinese economy is in our interests."

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