China may tip world back into recession'

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 China's slowdown in the next years may drag global economic growth below 2%, a threshold he views equivalent to a world recession. It would be the first global slump over the past 50 years without the US contracting Astrological Prediction For Indian Stock Markets 

"The next global recession will be made by China," Sharma, who manages more than $25 billion, said. "Over the next couple of years, China is likely to be the biggest source of vulnerability for the global economy." While China's growth is slowing, the country's influence has increased as it became the world's second-largest economy Financial Astrology

China accounted for 38 % of the global growth last year, up from 23 % in 2010, according to Morgan Stanley. It's the world's largest importer of copper, aluminum and cotton, and largest trading partner for countries from Brazil to South Africa Share Market Astrology

The IMF last week cut forecast for global growth this year to 3.3 %, down from an estimate of 3.5 % in April, citing weakness in the US. While the Washington-based lender left its projection on China unchanged at 6.8%, the slowest since 1990, it said "greater difficulties" in the country's transition to a new growth model pose a risk to the global recovery. The Chinese government expects 7% growth this year Stock Market Trading Tips

China's economy will continue slowing as the country struggles to reduce its debt, Sharma said. An additional 2 %age point slowdown would be enough to tip the world into a recession, he said. 

The global expansion, measured by market exchange rates, has slipped below 2% during five different periods over the past 50 years, most recently in 2008-09.All the previous world recessions have coincided with contractions in the US economy Share Market Astrology