China's Economic Struggles Spill Over, Slowing Growth Across Globe

• Domestic shocks in G20 emerging economies like China increasingly impact growth in rich countries • Spillovers from China explain up to 10% of output variation in other emerging markets and 5% in advanced economies after 3 years • China struggling with economic headwinds like high local government debt, falling property market, weak consumer and investor confidence • Russian economy pivot toward Asia likely to shift direction of spillover effects • IMF lowered medium-term growth outlook for G20 emerging markets to 3.7% from 6% over past 20 years, risking spillovers and setbacks to other economies