The fact that investment in regional economies has been weak as political, economic, and social structural reform is carried out seems to be another reason for the slowdown. Under this situation, the Chinese authorities have been providing a series of economic stimulus measures both on the fiscal and monetary fronts.
With relatively large room for conducting policy measures both on the fiscal and monetary fronts, the Chinese economy is likely to follow a generally stable growth path, albeit at a somewhat reduced pace. Emerging economies other than China are also showing sluggishness, reflecting the spillover effects of adjustments in China and global weakness in IT-related demand.