Businesses that in the earlier period of optimism derived earnings from high rates of turnover in asset markets – real estate agents, stock brokers, for example – face challenges, given that turnover is now greatly reduced. 3  In 2003, China’s growth in real GDP of 10 per cent added 0.8 of a percentage point to global GDP.
Demand fell short of potential and our estimates show that the output gap remained negative in 2015 and is likely to widen somewhat this year. Yet inflation accelerated, driven by exchange rate depreciation and a number of supply side factors, including drought and electricity supply constraints.