Greek Finance Minister Yanis Varoufakis argues that a weak domestic investment and slowdown in China will cause Australia to spiral towards recession while speaking to Fairfax Media as part of his tour of Australia. The one-time Sydney Uni economics lecturer said that China was crucial to Australia, but it isn’t strong enough to defy the global deflationary atmosphere.

“There will be a recession in Australia, because of the collapse of investment and because of the collapse in animal spirits – and this is because of what’s happened in China,” he said.