Australia's economy slows as China stumbles

Australia's economy expanded at its slowest quarterly pace in more than two years, data showed Wednesday, with exports dragged down by weakening growth in key trading partner China.

Resources-driven economies such as Australia, Brazil and Canada have been hurt by softening Chinese demand for commodities, which has triggered a dive in prices for metals and oil, sending their currencies tumbling and hitting revenue.

Canada, the world's fifth-largest oil producer, said Tuesday it had fallen into recession for the second time in seven years, while Brazil's GDP contracted for the first two quarters of this year.

Economic growth in Australia -- of which iron ore and coal are its largest exports -- expanded at a slower-than-expected 0.2 percent in April-June, taking the annual rate to 2.0 percent, the Australian Bureau of Statistics said.

The latest figures -- which followed strong 0.9 percent growth in the first quarter -- were softer than analysts' expectations of quarterly growth of 0.4 percent and year-on-year growth of 2.2 percent.