World worried over China's economic slowdown

Source: PTI

In a rare move, finance ministers and central bank governors of leading economies have voiced concern over the slowdown of China's economy, the world's second largest, which could pose serious challenges to the growth of the global economy.

China after witnessing nearly three decades of double- digit growth has been showing signs of slowness and India has now replaced China as the fastest growing major economy of the world. As a result of the economic slowdown, the Chinese economic model, traditionally based on manufacturing, investments and exports, is currently transitioning towards a model focused on domestic consumption, services and innovation.

"This rebalancing, which is being implemented in a resolute manner, inevitably affects China's economic partners, even if it is still too early to determine its precise impact. Yet, in any event, we will have to be ready to accompany these development," the French Finance Minister Michel Sapin said in his address to the IMF on Saturday.

Wolfgang Schauble, the German Finance Minister attributed global economic slowdown to the Chinese slowdown.