Mumbai: Whilst the possible sharp slowdown of the Chinese economy still remains a significant risk for the global economy and our region, there are newer challenges arising from uncertainties that have to be anticipated, like possible moves by the US Fed, a potential rebound of oil prices, possible Brexit, geopolitical risks in the Middle East and volatility in financial markets due to risk-on or risk-off sentiment.
Speaking on the impact of the Chinese slowdown on the region, RBI governor Raghuram Rajan said China is the world’s largest trading partner, largest exporter and second largest importer in 2014, “so it is clear that a slowdown in China will effect the global economy including the Saarc. He however assured the region that “India was conscious of the role its economy played in the region and the objective of securing and preserving macro stability is at the top of the agenda.” Despite the growing uncertainty, he said the Saarc region was the fastest gro-wing among developing economies.
