The third reason for the deteriorating global outlook is the slowdown in China. This has been going on for a while already and seems to be partly structural in nature. But trade tensions and vulnerabilities in China’s domestic economy have also contributed to the slowdown. Alternative estimates of China’s GDP already suggest significantly lower growth rates.
[SLIDE 4] Overall, many risks have materialized in the global economy recently. The change in the global economic outlook has also been felt on the financial markets, not least in the expected path of policy interest rates.