These various factors can explain why the correction on the markets was so violent. The Chinese government revised its growth forecast downwards compared with previous years to what is now 7%. 1 This is much lower than the larger growth rates of past years.
Even so, I would like to put this supposedly bad news into perspective: China is now the secondlargest economy in the world. By virtue of its sheer size alone, this means that growth of 7% today will leave a larger footprint on the global economy than, say, growth of 11% did in 2005. 1  IMF forecast: 2015 6.8%; 2016 6.3%.