The result as visible as it was predictable has been a sharp slowdown in economic growth.

And recovery prospects continue to depend on the emerging economies, even as they experience a sharp slowdown.

While a global recession will be averted, a severe growth slowdown will not.

But, since the end of April, a more persistent correction in global equity markets has set in, driven by worries that economic growth in the United States and worldwide may be slowing sharply.

An economic slowdown will exacerbate all our financial problems.

In China, the economic slowdown underway is unmistakable.

SHANGHAI Everyone is talking about China s economic slowdown.

The sharp fiscal retrenchment that has now started throughout southern Europe should contribute further to a sharp deceleration, if not outright fall, in domestic demand there.

On the demand side, the ongoing economic slowdown in China is starting to affect companies orders and revenues, adding to the challenges stemming from the persistently sluggish US economy.

In August 2001, he wrote that, The driving force behind the current slowdown is a plunge in business investment.

The financial crisis is over, but the age of general economic slowdown is only just beginning.

When investment returns to normal levels, economic growth will slow further.

A lower debt burden would certainly help Japan deal with its economic slowdown.

The problem is that the permits market price has plummeted in the midst of Europe s economic slowdown.

The Fed pumped money into the US economy and slashed its main interest rate the Federal Funds rate from 3.5 in August 2001 to a mere 1 by mid 2003.

The importance of the link between economic growth and the reduction of acute poverty must be emphasized (see figure below).

China is in the throes of an identity crisis as it faces an almost inevitable economic slowdown and the need to implement a new growth model.

China successfully navigated the crisis, avoiding a significant slowdown, by ramping up public spending.

Immigration itself may even slow dramatically, depending on the length and depth of the economic slowdown.

But the evolving slowdown is not the only reason the threat of a wage price spiral in Europe is overblown.

In the coming months, nearly every region in the world will experience economic deceleration, with exports declining and unemployment increasing.

In China, a hard economic landing looks increasingly likely as the investment bubble deflates and net exports shrink.

So Trichet should relax, stop threatening others, and let the economic slowdown do the work for him.

Otherwise, the construction led economic slowdown would not be today s 1 trillion in annual lost production.

But, even as China recovers from its current slowdown, it is not likely to provide a similar boost to all of its trading partners.

But the government continues to miss its fiscal targets, more because of the global slowdown than through any fault of its own.

But the resulting economic slack gives us the historic opportunity and need to compensate for low consumer spending with increased investment spending on sustainable technologies.

None of these risks implies that the monetary union will inevitably be a victim of this severe economic downturn.

Even China is showing signs of a slowdown, owing to the government s attempts to control economic overheating.

So the signs of a worldwide economic slowdown have increased. The American crisis is now spreading to other areas of the world.

The severity of Europe s economic downturn, deficiencies in the euro s design, and ill conceived fiscal austerity measures are all fueling the exodus.

Given this, China s economic slowdown since the first quarter of 2010 has apparently been caused mainly by external and cyclical factors.

Containing China s Slowdown

This was a meaningful increase after ten consecutive quarters of deceleration, and it marks the Chinese economy s second soft landing in slightly less than four years.

More recently, many claimed that with the rise of China and the petro states, an American slowdown could be decoupled from the rest of the world.

The speed and the severity of the economic slowdown are far greater than any of the post war downturns of the past 60 years.

Though oil prices have been dampened for now, a robust recovery could send them soaring again.

While emerging economies can deal with the economic slowdown in industrial countries, the financial sector transmission mechanism is more challenging.

So what explains the sharp decline in China s economic output, in an environment of rapid credit expansion? The answer is simple the way the credit is being used.

With Treasury yields spiking and economic activity collapsing, the Fed would want to cut interest rates and flood the markets with liquidity.

These risks are already exacerbating the economic slowdown equity markets are falling everywhere, leading to negative wealth effects on consumption and capital spending.

Indeed, if policymakers continue to sit on their hands, it is not hard to imagine a sharp global slowdown or even a devastating financial crisis.

In reporting on the crisis, the media have placed too much emphasis on finance alone, and have paid insufficient attention to the marked slowing of economic growth.

Will the United States engineer a path to renewed growth? Will China find a way to reverse its economic slowdown?

And, in our globally integrated world, the slowdown in Europe will exacerbate the slowdown in the US, and vice versa.