Even though the financial stresses that had emanated from abroad at the start of this year have eased, global risks require continued attention. Much of the turmoil early this year appeared to be associated with concern over the outlook for Chinese growth, which in turn has broad implications for commodity prices and global economic growth.
Recently, the renminbi has moved in a more predictable fashion and Chinese capital outflows have abated. However, it is widely acknowledged that China faces considerable challenges as it continues to rebalance its economy toward domestic demand and consumption.