Tuesday 2 October 2012

CHINA’S REBALANCING AND ITS EFFECTS

Business Spectator logo

WHO'LL FEEL THE PAIN OF A SLOWER CHINA?

Stephen Grenville

Business Spectator, October 2, 2012

There is a vigorous debate on the prospects for China's growth. But there is little disagreement that the 'new normal' for China is significantly slower than the 10 per cent-plus growth of the past decade and that there needs to be a rebalancing over time, reducing the role of investment in driving growth. How will these changes play out for China's trading partners?

As the latest IMF Economic Outlook shows, emerging countries have accounted for almost all of world growth over the past four years and China accounts for much of this (see IMF graph below; emerging economies are in red).

clip_image002

China's spectacular growth over the past decade has brought some large structural changes to its trading partners. These are the countries which will be most affected if China slows sharply.

(...) [article here]

No comments: