SYDNEY -- Australia's fortunes are plunging along with resource prices. Iron ore is Australia's No. 1 export, with coal coming in at No. 2. But the price of each is dropping precipitously, mostly because of China's economic slowdown and a corresponding fall in demand.
Resources and energy account for almost half of Australia's exports. This resource dependency now has the country's economy facing an uphill climb. Given that the nation's service sector accounts for 70% of gross domestic product, putting the brakes on resource exports will slow the flow of money and possibly hit the overall economy.