The Chinese slowdown will also affect many developing countries that rely on raw materials exports to China and have already been impacted by sharp rises in interest rates, as well as facing disruption from this year’s El Nino weather phenomenon.
The secular slowdown in Chinese GDP growth could be accelerated by COVID-19 legacies and the property market collapse.
The world slowdown in goods trade and foreign investment could become entrenched; Western firms dependent on China will see reduced profits.
Developing countries will find it even harder to service their debts and some may become more dependent on Chinese loans.
Inflation is easing, but Western central banks will struggle to recover their credibility while the cost-of-living crisis is continuing.
