Since around August/September last year, when the iron ore price fell sharply and mining companies started cutting investment projects, a cloud has been hanging over the Australian economy. In the last month or so it seems the cloud has become darker. It is increasingly clear that China is not growing like it used to, the mining investment boom has peaked and the rest of the economy has been slow to respond to lower interest rates. The need to transition from growth largely driven by the mining investment boom to more broad-based growth is now upon us. Some are even talking of recession. But how serious are the risks? And what does it mean for investors?