CHINA'S ECONOMIC SLUMP COULD WIPE $700 BILLION OFF THE WORLD ECONOMY SAYS OECD

Should China's economy slump, the world economy risks wiping out over $700 billion from it's economy just as the Chinese economy struggles to hit a 7% growth target this year, according to a new report from the Organisation for Economic Co-operation and Development (OECD).
The gloomy prediction  came as it cut its forecasts for global growth in 2015 and 2016 and warned that the “outlook has worsened further for many emerging market economies”.
 The think-tank left its forecasts for UK growth unchanged at 2.4% this year and 2.3% in 2016, but the OECD’s latest interim economic outlook warned that global trade had “stagnated” and financial conditions “deteriorated”.
The OECD, which cut its growth forecasts for China, estimates that a 2 percentage point decline in domestic demand could knock 0.4% off global growth in 2016, and 0.5% in 2017. That spells a combined $700 billion hit to the world’s economy, based on the World Bank’s $77.9 trillion estimate of global GDP last year.Beijing is fighting hard to avoid the world’s second biggest economy stalling, with five interest rate cuts since last November and a devaluation of the yuan, which triggered a summer of turmoil in financial markets.Other emerging economies including Russia and Brazil — whose economies lean heavily on tanking commodity markets — are also fighting against a toxic combination of recession and high inflation, the OECD reported. It added: “Advanced economies should continue accommodative monetary and fiscal policies to ensure that the recovery gains momentum, and spills over to strengthen employment, business investment and trade.”