One Striking Chart Shows Why, According to MS, The Next Global Recession Begins In China

Jon Alternative Media, Blogosphere, Economy

Much has been said about China in the past year. Now, courtesy of Morgan Stanley’s Chetan Ahya, here is one additional data point revealing why China will be ground zero for the next global economic slowdown.
As Ahya notes in his Sunday Start note, “several large economies in the world including but not limited to the US, euro area, China, Japan and UK are facing the 3D challenge of demographics, debt and disinflation. Among these economies, we believe that China, which currently accounts for 18% of global GDP and 27% of global manufacturing and contributes 45% to global growth, will be the biggest drag towards lower nominal GDP growth and consequently lower expected returns.”
Surprisingly, unlike many other Chinese doomsayers, Morgan Stanley does not think the catalyst of China’s upcoming “hard landing” will be financial, or debt-related:

This post was published at Zero Hedge on Aug 28, 2016.