Four thousand U.S. dollars are counted out by a banker
Four thousand U.S. dollars are counted out by a banker counting currency at a bank in Westminster, Colorado November 3, 2009. REUTERS/Rick Wilking

Dr Nouriel Roubini, who predicted the 2008 housing market crash in the US and the global financial crisis, established the company. It said the slower growth of the Chinese economy would negatively affect commodity prices and volume of Australia;s exports, while local consumer and investment weakness would continue to drag Australia's gross domestic product.

Due to the poor timing of the federal government's belt-tightening measures, Roubini said the 2015 GDP would likely be below 3 per cent or almost zero growth from the expected 2.9 per cent economic expansion for 2014.

David Nowakowski, economist at Roubini's, predicts one or two interest rate cuts by the Reserve Bank of Australia, which would bring down key lending rate to 2 per cent.

He said, quoted by The Sydney Morning Herald, "The Australian dollar is likely to weaken to below US75c - a fall of around 20 per cent - on a combination of the lower interest rate differential and slumping GDO growth, with commodity price effects outweighing volumes."

Business Insider reports that Roubini's gloomy outlook has affected the Australian currency that just over one hour that the forecast was published, sellers pushed down the Aussie dollar through 89 cents, the lowest level since early February 2014.

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