Economics
China Stands Between Emerging Market Turmoil and Global Pain
- EM pain rarely hits developed economies; China is exception
- Deepening trade war will be a fresh test for China’s economy
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China’s growing share of the global economy means its familiar role as the bulwark between emerging market pain and developed economies has never been more crucial.
This year’s turmoil in markets across Argentina, Turkey, South Africa and now spreading to Asia has done little damage to the growth outlook for most developed economies. Indeed, Federal Reserve Chairman Jerome Powell has showed little sign he’ll slow the pace of monetary tightening, which is causing so many strains across the developing world.