China forecast to tip world into recession

New York

FORGET about all the shoes, toys and other exports. China may soon have another thing to offer the world: a recession.

That is the prediction from Ruchir Sharma, head of emerging markets at Morgan Stanley Investment Management, who says a continuation of China's slowdown in the next years may drag global economic growth below 2 per cent, a threshold he views as equivalent to a world recession. It would be the first global slump over the past 50 years without the US contracting.