Simulations run by Germany’s Central Bank show that if China slows down more severely than expected, there would be a slowdown in Euro Area growth of 0.2%. Any impact on the German economy would be contained. The scenario therefore, is not as severe as many would think. The Bundesbank does warn that , more worrying would be the heightened volatility in the financial markets due to uncertainty about China.
More from this interview and others in the latest episode of Real Economy.