The United States accounted for 8.6% of the world’s exports and 12.7% of the world’s imports. So it is clear that a slowdown in China will affect the global economy, including the SAARC region. The sharp contraction in China’s imports over the past year, has already led to spillovers through the trade, confidence, tourism and remittance channels.
SAARC nations have not been able to avert its impact. More negative externalities could follow as Chinese economy adjusts to a more sustainable path.