This is apropos 'IMF cuts global growth forecast as China slows' carried by Business Recorder yesterday. According to it, the International Monetary Fund has cut its global growth forecasts for the third time in less than a year. Citing perhaps the sole reason behind its new forecast, it says that as new figures from Beijing have shown that the Chinese economy grew at its slowest rate in a quarter of a century in 2015. To back its forecasts, the IMF cited a sharp slowdown in China trade and weak commodity prices that are hammering Brazil and other emerging markets.
That the former 'Middle Kingdom' has regained its position in world's economy is a fact that has found its best expression in the Fund's projections. It means that a slowdown in world's largest economy is in fact a euphemism for the global economic slowdown. One cannot say with any measure of certainty that China's economy has entered an 'economic crisis'; but one can always say with confidence that 6.9 percent growth rate under Xi Jinping was the slowest in China since the 3.8 percent of 1990, a year after the Tianenman Square crackdown that took place under the leadership of Deng Xiaoping.
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