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OECD: No let up in China slowdown

Monday, November 09, 2015 - 01:29

China's economic growth is likely to slow to 6.5 percent next year and cool further to 6.2 percent in 2017, according to the Organisation for Economic Co-operation and Development. As Sonia Legg reports, their report suggests policy makers will have their work cut out as the Asian giant adjusts to lower growth.

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European companies don't need reminding about China's slowdown. It's having an impact across the region - tire and auto parts maker Continental the latest giant to post weaker than expected third quarter earnings as a result. CFO Wolfgang Schaeffer. (SOUNDBITE) (ENGLISH) WOLFGANG SCHAEFER, CONTINENTAL CFO, SAYING: "In the third quarter we saw 5 percent car production down in China and we have felt that." The Organisation for Economic Co-operation and Development expects China to slow to 6.5 percent next year and 6.2 percent the year after. Its latest outlook also suggests Beijing's stimulus isn't sustainable longer term as it could deter private investment. Vicky Pryce is Chief Economist at CEBR. (SOUNDBITE) (English) : VICKY PRYCE, CHIEF ECONOMIC ADVISER, CEBR, SAYING: "It's not just China, there's Brazil which is getting into recession and has huge problems in terms of its deficit - all these things are very dangerous looking ahead." Latest German data showed a September bounce back in exports and imports. But third quarter GDP figures - due this week - are still expected to show slower growth in the region's largest economy. (SOUNDBITE) (English) : VICKY PRYCE, CHIEF ECONOMIC ADVISER, CEBR, SAYING: "World trade is not growing nearly as fast at it should be doing at this stage of the recovery - it is not just the sanctions in Russia, it is also an issue of funding not being averrable in the amounts we would like to see them being available to facilitate trade across the world." The OECD has also revised its outlook for the euro zone down by 0.1 percent. It expects growth of 1.5 percent this year and 1.8 percent in 2016.

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OECD: No let up in China slowdown

Monday, November 09, 2015 - 01:29