News

GLOBAL: China downturn adds to bleak economic outlook - study

Most popular

Technology bringing tasting events closer to home

What rum needs to do to recognise its potential

How DNA testing will shape the future of drinking

A-B InBev's Craft Brew Alliance purchase - Comment

What does Brexit mean for drinks trademarks?

MORE

China's economy is facing a serious downturn this year and the reverberations will be felt across the region and beyond, a new report has warned.

Growth of China's gross domestic product could fall beneath the 6% mark this year, according to the annual Global Risk Network assessment for 2009, published today (13 January) by the World Economic Forum.

It warned that the extent of the economic downturn in China would affect the depth of recessions felt in western economies, as well as in the Asia Pacific region.

The report said: "The decline in export demand has led to a substantial reduction in China's overall economic growth, increasing considerably the risk of a hard landing that would stress the financial system and could aggregate social tensions within China and beyond as other economies face similar decline." 

China's position as both a creditor to other nations, notably the US, and an importer of goods mean that a dramatic slowdown would have "global ramifications", according to Daniel Hofmann, chief economist with Zurich Financial Services Group, which helped to publish the report alongside Citigroup, Marsh & McLennan, Swiss Re and Wharton School Risk Center.

The report authors' bleak assessment of the global economy in 2009 was echoed in the UK today, by the British Chambers of Commerce.

"Disturbing", "frightening" and "exceptional" were the words it used to describe a survey of nearly 6,000 UK businesses in the fourth quarter of last year.

It said: "There are no positive features in the Q4 results. Domestic demand is plunging, exports are falling, and confidence is plummeting."

The group's comments add fuel to speculation that the UK government's original prediction of an economic recovery in the second half of 2009 will not be realised.


Related Content

Global economic upswing fails to drown out risky outlook - World Economic Forum's Global Risks Report 2018 - Part I

Global economic upswing fails to drown out risky outlook - World Economic Forum's Global Risks Repor...

Global economic growth on the wane - Organisation for Economic Co-operation & Development

Global economic growth on the wane - Organisation for Economic Co-operation & Development...

Cybersecurity fears deepen as risks intensify - World Economic Forum's Global Risks Report 2018 - Part II

Cybersecurity fears deepen as risks intensify - World Economic Forum's Global Risks Report 2018 - Pa...

What are the biggest global risks facing drinks companies in 2019? - Sustainability Spotlight

What are the biggest global risks facing drinks companies in 2019? - Sustainability Spotlight...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?