Containing China s Slowdown

Long Live China s Slowdown

The past three months, however, have seen a significant slowdown in China s exports, domestic investment, industrial output, and tax revenues. A major slowdown seems to be looming.

A further slowdown in China is a distinct possibility. China s leaders must do what it takes to ensure that such a slowdown is not viewed as secular trend a perception that could undermine the consumption and investment that the economy so badly needs.

World trade has stalled. And China s economic slowdown and market turmoil this summer have created further uncertainty.

Moreover, donor countries had reduced their official development assistance owing to a slowdown in their economic growth.

The outcome of premature fiscal consolidation is all but foretold growth will slow, tax revenues will diminish, and the reduction in deficits will be disappointing. And, in our globally integrated world, the slowdown in Europe will exacerbate the slowdown in the US, and vice versa.

The outlook for 2005 is for a slowdown in economic growth as commodity prices decline but for a slight increase in inflation.

To address this slowdown, the Office of the High Representative instituted a new system to promote progress on the mission implementation plan.

But the slowdown has been contained, and will likely remain so for the foreseeable future. The case for a soft landing remains solid.

Excluding China, there was a general slowdown in growth of service imports by developing countries, mirroring a lower growth rate in their exports.

They were facing increased poverty, a stagnant economic situation and a slowdown in economic growth resulting from the debt crisis of the early 1980s.

A more likely culprit for the steep price decline is a combination of the shale energy revolution in the US and the sharp slowdown in Chinese growth. China s slowdown has helped precipitate a broad based fall in commodity prices that is having a devastating effect on countries like Argentina and Brazil, with which the US authorities presumably have little quarrel.

Raising interest rates won t have much impact on the international price of grains or fuel. Indeed, given the size of the US economy, a slowdown there might conceivably have a far bigger effect on global prices than a slowdown in any developing country, which suggests that, from a global perspective, US interest rates, not those in developing countries, should be raised.

Economically, the BRICS are facing serious challenges. In addition to a well documented growth slowdown, China has lately experienced considerable stock market turmoil and currency devaluation.

This is no surprise for an export led economy dependent on faltering global demand. But China s looming slowdown is likely to be both manageable and welcome.

Consequently, and despite a further slowdown in the advanced countries during the 1990s, income gaps grew wider and convergence failed to materialize (UNCTAD, 1997 69 101).

This raises an important tactical challenge for China. How can it stay the reform course without being derailed by a significant growth slowdown in the short term?

Hence the question on the minds of politicians and economists alike Is the productivity slowdown a permanent condition and constraint on growth, or is it a transitional phenomenon?

New York Will rising global inflation lead to a sharp global economic slowdown? Even worse, will it revive stagflation, that deadly combination of rising inflation and negative growth?

First, is the possibility of setting up an Asian Investment Bank to meet the region's infrastructure needs in the light of the slowdown in infrastructure development in the region.

The slowdown is not a surprise. It is a predictable result of the recession and slow recovery that have left millions of Americans without health insurance and dampened household spending.

Pessimistic Europeans are behind the curve. They are bracing for a 2007 US growth slowdown that already has taken place with little consequence for both the US and European economies.

China successfully navigated the crisis, avoiding a significant slowdown, by ramping up public spending. But, as a result, it now has no further scope for increasing public consumption or investment.

What explains this slowdown in health care spending? How much of it is attributable to the weak economy, and how much is the result of changes in provider and consumer behavior?

That would be a good thing. With Sarkozy off his back, ECB President Jean Claude Trichet might feel freer to cut interest rates to counter the impending economic slowdown in Europe.

Expressing concern at the recent economic slowdown, particularly its adverse impact on the economies of developing countries, which could hinder the realization of agreed development goals, in particular the eradication of poverty,

If China s leaders continue to choose debt fueled growth over reform, they will only delay, and possibly prolong, the inevitable slowdown. That would turn Xi s Chinese Dream into a more elusive prospect.

PRINCETON Any economic slowdown increases debt burdens, whether for households or for states. Today, both are looking for ways to reduce the weight of debt and some would prefer to escape it.

Charged, by virtue of its mandate, to evaluate, monitor and follow up closely the progress made, the Group is particularly resolved to help rapidly overcome any hindrance or slowdown affecting the process.

The economic headwinds are formidable fiscal austerity, high interest rates outside AAA rated countries, credit cutting by banks, deleveraging households, weak private sector investment, and declining exports as the global slowdown undermines demand.

With imports still growing strongly and commodity prices beginning to fall as a result of the world slowdown, Argentina s large trade surplus is disappearing quickly. Fearing a weaker peso, spooked investors demand dollars.

Some suggest that, given the economic slowdown, we should put global warming on the backburner. On the contrary, retrofitting the global economy for climate change would help to restore aggregate demand and growth.

Meetings like the CDF provide a useful window into a country whose importance for the global economy will continue to grow. The current slowdown to a new normal makes such windows even more important.

While a slowdown in the pace of reform might bring temporary relief, it would almost certainly reverse Spain s hard won achievements. Indeed, with the worst now over, complacency is the Spanish economy s worst enemy.

That conclusion would have to be significantly modified in light of the data recorded since the financial crisis. The economic slowdown in 2009, the worst year of the crisis, was nothing short of catastrophic.

BERKELEY Over the last five years, the growth of health care spending in the United States has slowed dramatically to the lowest rate in the past 50 years. The slowdown is not a surprise.

Thus, the US slowdown affects European exports in two ways. It has an indirect effect on European exports to Asia, which can be sizeable because the US market is so important for Asian exports.

Meanwhile, a highly interdependent and (now) less dynamic world economy has been limiting the scope for external growth drivers. Accordingly, even countries with sound balance sheets and manageable leverage have experienced a growth slowdown.

Mr. Bhattacharya (Observer for the World Bank) said that, notwithstanding the slowdown in world economic growth in 2005, developing country economies would continue to outperform those of high income countries by a wide margin.

But the new leadership s reluctance to intervene in order to spur growth is just part of the story of China s current slowdown. Something more fundamental has happened, weakening the government s ability to stimulate the economy.

There is certainly reason for concern beginning in China. After decades of nearly double digit growth, China appears to be experiencing a marked slowdown one that some argue is actually worse than official statistics indicate.

The two main surprises were the slowdown in emerging markets, which was slightly sharper and more widespread than anticipated, and Europe s embrace of some truly remarkable reforms though still far short of what is needed.

Since 2009, India has been expanding its deficit as a deliberate measure to counter its economic slowdown. Because fiscal expansion followed several years of restraint, it was very effective in spurring demand and output growth.

The most common explanation is the global economic slowdown, which has diminished demand for energy, minerals, and agricultural products. Indeed, growth has slowed and GDP forecasts have been revised downward since mid year in most countries.