China’s economy is expected to have met the government’s target of at least 6.5% growth of GDP for 2016. It is expected to continue to grow at a slightly slower rate (6.2%) also next year.
Two main risks are threatening such a robust economic performance by the Chinese economy, which, if materialized, will result in a sharp slowdown in the Chinese economy, will have effects that will be felt globally. Commodity exporters, like for instance Brazil, Australia and South-East Asia, would then be hardest hit. The first one arises from the high level of debt overhang.