Global Growth Faces Hazards

David Wyss,Global Chief Economist at Standard&Poor's,notes that 9% growth has been average for China for the past 30 years.Now its trading partners are slowing down.Falling end demand and rising commodity prices will slow China's growth.In the U.S.,there is a 30% chance of a double dip recession,with housing being much worse than expected.So far,we haven't seen the Chinese consumer growing fast enough to sustain 9-10% GDP growth by themselves.
In Europe,you've got stellar German growth,but the rest are looking pretty sick.The European Central Bank was very late off the block in lowering interest rates.The price correction hasn't gone as far there as it has in the U.S.Southern Europe will want lower rates,but Northern Europe will want higher,Mr.Wyss points out.
Chinese companies have been reporting their Q2 earnings.Industrial and Commercial Bank of China saw a 38% rise in profits,while Bank of China reported a 27% climb,and PetroChina 4%.Multinational firms are counting on robust Chinese growth to get them through the tough days.China reported good manufacturing results on Wednesday.