Andrew Bolt points out that our recent run of deficits means we have no defence against a recession.
Andrew Bolt points out that our recent run of deficits means we have no defence against a recession. Mark Rogers

Bolt calls Australia a 'sitting duck' as world economy slows

Australia may pay for racking up a decade of deficits, leaving the Federal Government with no money to cushion the blow of a recession: 

The International Monetary Fund has sounded a warning that the world is at risk of a sharp downturn, as the global ­economy slows faster than ­expected amid trade conflicts and rising debts.

China yesterday reported that 2018 had brought its slowest economic growth in almost 30 years of 6.6 per cent, highlighting a key IMF concern, that China's slowdown was deeper than expected.

It could actually be worse than we're told:

Economists expect China's official GDP growth to slow to as low as 6 per cent this year, although many argue the official figures were not to be trusted and true growth could be as low as 4 per cent. 

And Australia will suffer worse than most as China slows:

In 2017-18, China was by far Australia's largest trading partner, contributing $194.6 billion worth of imports and exports. This was more than the combined value of trade with Japan and the United States ($147.8 billion).

Which makes our politicians seem even more reckless in having loaded us with debt over the past decade, leaving them with little money for stimulus spending if the economy tanks:

Net debt
Net debt