Worries over China's slowing economy have been a recurring headwind for investors in recent years, but a note from U.K. research firm Capital Economics argues that slower growth will in fact be positive for the rest of the world.
"China's continuing economic slowdown is clearly bad news for some commodity exporters. However, the world as a whole should actually benefit from slower but better-balanced growth in China," the note said.
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Concerns over the state of China's economy and risks of a credit bubble have come back into focus recently following the country's first bond default in recent history, combined with a string of negative economic data. Meanwhile, Chinese Premier Li Keqiang warned on Thursday that the economy faces "severe challenges" in 2014, rattling sentiment and prompting a sharp sell-off on the Chinese stock market.
If the world's second-largest economy was to suddenly slow, or if its credit problems were to lead to an economic crash, many fear the global ramifications would be severe.