2 The slowdown of foreign growth now appears to be more persistent than initially assumed, with growth likely running below potential for most of last year.
Economic activity slowed noticeably in the second half of 2018 in China, where policymakers have been trying to achieve a balance between restraining very elevated levels of domestic debt, on the one hand, and maintaining strong aggregate growth, on the other. The protracted trade conflict with the United States has further complicated that challenge.