"If the iron ore price stays where it is, then there is a real threat to growth in 2013, " said Mr Oliver of AMP Capital.

BBC: Australia's economic growth slows in second quarter

"Commodity prices have fallen and inflation has come in less than expected, and of course the Australian dollar through all of that has remained surprisingly strong, " said Shane Oliver, chief economist with AMP Capital Investors.

BBC: BHP Billiton Western Australia iron ore mine

"All of Asia has had such huge gains, so we had to have a correction sooner or later, " said Shane Oliver, head of investment strategy at AMP Capital in Sydney.

WSJ: Nikkei Drops 7.3%