China's economic fall impacting global economy
China's economy has slowed down in the last quarter, however there is stronger spending by consumers…China's economy has slowed down in the last quarter, however there is stronger spending by consumers, whom have helped to not let China's economy take a deeper downturn.
The world's second largest economy grew by 6.9% in the last 3 months ending September. This was down by 0.1% from the previous quarters 7%.
The slowdown of China's economy has alarmed global markets and held down economic growth, especially in countries such as Brazil and Australia where raw materials are exported from.
Weakening trade and manufacturing have increased concern in China about possible job losses and unrest. The latest data emphasize the two-speed nature of China's economy in the midst of a marathon effort by the Communist Party to nurture self-sustaining growth based on domestic consumption and reduce reliance on trade and investment. Manufacturers are shrinking and shedding millions of jobs while consumer-orientated businesses expand.
Furthermore, rising Chinese incomes are forcing demand for European wines, wheat and fresh fruit from Australia.
The International Monetary Fund says China's deceleration is having a bigger-than-expected impact on the global economy. That is why the IMF lowered its forecast for global growth this year to 3.1%, which is the weakest rate since the recession in 2009.
Most of the pain is being absorbed by emerging market countries and others that supply raw materials to China. The IMF expects emerging market economies to slow for the fifth year straight. "China's economic struggles are adding to the uncertainty that it is already in place for the global economy, signalling that lower growth rates for the global economy may be in store." states a report from the International Strategic Analysis consulting firm.