Slow down in China begins to pose a threat to the growth of the world economy

The new goal of the Chinese leadership will be to ensure the sustainability of the economy in conditions where its growth is less than 7 percent, against 9 percent in the last two years. Bloomberg writes about this today.

“I haven’t worried much until this week,” says Sydney, the head of the Sidney oliver, “however, the changes in China are more powerful than previously expected. They can pose a threat to the entire world economy.”

Shane oliver is convinced that the Chinese economy this year will not be able to grow more than 7.5 percent.

The main consumer of raw materials from Australia to Brazil, China provided about a third of the growth of the world economy last year. The slowdown of his economy will most seriously affect the developed countries, with all his might trying to recover from the worst recession since the Second World War.

"The world economy will suffer from a decrease in growth in China, since it is China who puts the most in its growth," says Darius Kovalchik, Strategist Bank Agrikol Credit in Hong Kong.

The danger of the rollback of global development to the recession is exacerbated by the possibility of reducing incentives from the US Federal Reserve, who recently voiced by its chairman Ben Bernanke. In 2014, such incentives can be removed at all, said the head of the Fed.

We relied too much on the Fed and China, oliver says, and as a result, this week we received blows from both sides.

Australian exporters of iron ore raw materials and coal will suffer in the future twice: from a decrease in demand and from falling prices for raw materials groups, writes Bloomberg. Slow down in China exerts pressure on the economy of Brazil, South Africa and Southeast Asia. Brazil alone lost 12 percent of its exports in the first five months since the beginning of 2013.

The new economic policy of the Chinese leadership provides for a more closed credit-money policy and emphasizes the need for more balanced growth in the long term. This is signs of quantitative rather than qualitative growth, says Steven King, chief economist of London HSBS. His agency this week lowered the forecast for China to 7.4 percent after earlier than 8.4 percent of growth.