When China sneezes … well, you know the rest.
The volatility in financial markets last week speaks to the growing importance of China to the global economy. As growth forecasts for the world's second-largest economy and biggest engine of growth over the last decade continue to fall, the outlook for the global economy remains uncertain.
"Global growth has been frustratingly fragile," said Joe Davis, global chief economist for Vanguard Group. "In the last three years, it has been significantly lower than the cycle a decade ago, and there is little acceleration in any economy of the world right now."