Fragile Global Economy and China

Risks Still Exist

First Published Date: August 18, 2015

The International Monetary Fund (IMF) recently stated that although the global economy is recovering, it is still fragile and there are risks on the horizon.

The US is a strong performer and although China has had some recent stock market turmoil, its economy is still resilient.

The Eurozone economy is expected to grow 1.5 percent in 2015 and 1.7 percent in 2017. These figures are a lot better than 0.8 percent growth in 2014.

A downward trend in commodity prices will hurt emerging economies. And then there is the possibility of a US rate increase – which will likely to have impact on economies around the globe.

After a 0.1 percent slump in 2014, Japan will likely grow 0.8 percent in 2015.

China’s economy is strong enough to withhold volatility and is expected to grow 6.8 percent in 2015. Although this rate is the slowest since 1990, it’s still not bad compared to other global economies. Even with the recent stock market selloff in China, stocks are 80 percent higher than one year ago.