Investment drop in China would hit global growth, says IMF paper

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A new International Monetary Fund (IMF) paper, published on November 6, has estimated that for each one-percentage point cut in investment in China, global growth declines by just under a tenth of a point.

The authors, Ashvin Ahuja and Malhar Nabar, say this effect has increased five-fold in the past decade as a result of China's growth becoming increasingly reliant on investment.

Spillover effects from a drop in investment would be felt most strongly by Asian economies within China's supply

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