"China has been slowing down for years and will continue to slow down. The official data greatly overstates the actual growth rate, but whatever it was last year, I think we will lose another percent, a percent-and-a-half of growth," Willem Buiter, the chief economist at Citigroup, told CNBC on Thursday at the World Economic Forum in Davos, Switzerland.
"So while this isn't a full-scale recession, it is definitely a growth recession and it will mean continued downward pressure on commodity prices and it will also mean continued weakness in demand for the exports of countries in the supply chain to China and indirectly for the rest of the world. So it is bad news; it is entirely avoidable with the right policies, but the Chinese authorities are not yet ready to implement these right policies," he added.
Global economic growth at current exchange rates slowed to around 2.3 percent year-on-year in the fourth quarter of 2015, according to a Citi report out on Thursday. The bank said this was roughly equal to 2 percent year-on-year, "adjusted for the probable mis-measures of China's GDP growth rate."
Chinese official economic data is often said to be exaggerated, although the magnitude is a matter of contention. The country reported growth of 6.9 percent in 2015.