An intensifying slowdown This background matters as we contemplate the accumulating evidence of a further growth slowdown, both in the world economy and domestically. In China, there are new fears of worsening growth. Of course, we have known for some time that China had to slow from double-digit growth rates.
We have also known that it was unlikely to need continually expanding quantities of commodities, particularly industrial commodities such as coal, iron and copper. What we have not known is whether this slowdown would be abrupt or gentle. Market assessments have recently shifted, to some extent, away from the benign, gradual scenario.