
![]() |
| (File Photo) |
2016 kicked off with a financial market and commodities rout over worries about the global economic outlook. China's economic growth slowed to a 25-year low of 6.9 per cent in 2015, causing major concern for investors around the world about spillover effects of China's economic slowdown.
The spill-over effects of a slowing Chinese economy are overwhelmingly exaggerated and China's economy can still maintain a high growth rate, according to economic experts at Goldman Sachs in Beijing.
The negative effect of China's economic slowdown on the global economy, especially in developed economies has been exaggerated according to Goldman Sachs’ chief economist Jan Hatzius, who spoke at the China Macro Economic Forum on Jan 29 in Beijing.
He said that on one hand, China has limited risk exposures to trade in the United States and most countries in the euro area; on the other hand, the correlation between China's financial system and that of the United States and European countries is also weak. Therefore, the spillover effects of China's economic slowdown are limited in terms of the two major transmission channels-- trade and finance.
Even in such hypothetical situations as the Chinese domestic consumer demand growth slowing a further 2 percentage points and the RMB exchange rate continuing to depreciate, the impact on the US and European economies would at most be about 0.2 and 0.3 percentage point, said experts in Global Investment Research at Goldman Sachs.
Goldman Sachs predicted that China's economic growth will slow to 6.4% this year and 6.3 percent next year. But China is still able to maintain medium-to-high speed of growth.
Have you ever taken these beautiful subways in China?
Chinese beauties, foreign models meet in Chengdu
Awesome! Aerial pictures taken on J-11 fighter
A foreign girl explains what China should be proud of
Chinese navy's air-cushioned landing craft in pictures
Chinese pole dancing master opens class in Tianjin
Splendid Sichuan after snow
College girl of Vancouver crowned Miss Chinese Int'l 2016
Pentagonal Mart becomes the largest vacant building in Shanghai
Top 20 hottest women in the world in 2014
Top 10 hardest languages to learn
10 Chinese female stars with most beautiful faces
China’s Top 10 Unique Bridges, Highways and Roads
Unfair to blame Hollywood racism on China
95% of projects on financing platform found to be fake probe
'Strictest’ asset reporting system still leaves out too much experts
The loss of ‘The Voice’ proves Chinese TV needs to stand on its own two feetDay|Week