Markets are on edge, gripped by growing concern over the Chinese economy and a potential US rate rise, plus the slump in emerging markets and the oil price
China’s continued growth helped limit the impact of the global recession of 2009 but now fears are increasing that the world’s second-biggest economy could cause the next recession. China’s growth is slowing, with knock-on effects for producers of commodities that power its manufacturing industry and for makers of goods bought by the country’s new middle class. The authorities have struggled to stop share prices plunging after a bubble fuelled by retail investors. China then stunned markets by devaluing the yuan last week – a possible distress signal that raised further questions about its policymakers’ ability to keep a grip on the economy.
Source: The Guardian Circular Economy RSS