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China is a particular concern to Europe – ECB’s Nowotny

FXStreet (Mumbai) - European Central Bank (ECB) policymaker Ewald Nowotny said on Monday said global economy remains on a moderate recovery track but China's slowdown is of particular concern as it raises the risk of crisis returning to developed nations.

Key Points

“The most urgent issue here is the financial volatility and economic weakness in various emerging market economies”

“Recent developments in China - since last year, world's largest economy in terms of GDP based on purchasing power parity - are of particular concern."

“The emerging markets now bring the crisis back to us - and at the same time remind us of the interdependence in the global economy”

"We should not be astonished about dampened global demand and deflationary tendencies if the euro area posts a current account surplus way above 3 percent of GDP”

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