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Reuters/Wong Campion
China can afford a breather.
IT'S OK

The world economy doesn’t really need China right now

By Matt Phillips

China’s economy is grinding gears, leaving observers unsure of where the growth of the ascendant Asian colossus will come from over the next few years.

But that doesn’t mean that the global economy is doomed to follow suit.

To be sure, China is an important entity, especially to the economies that subsist on China’s desire for raw materials. (We’re looking at you, Australia.)

But other global giants look ready to pick up some of the slack.

To wit, Japan—don’t laugh, it’s the world’s third-largest economy—just reported the best economic growth in a year, driven by solid demand from both the corporate and the household sectors.

Meanwhile, in the US it’s becoming clear that growth is snapping back from the weather-induced first-quarter slowdown. And across the pond, growth in the euro zone—the monetary bloc as a whole is arguably the world’s largest economic entity—is also picking up.

Of course, global growth would be much more robust if China was also charging ahead. But the world is at least well-positioned to allow China the space to do some needed economic restructuring.