Why Slow China Growth Shouldn't Spook Investors

Last Friday, China reported Q3 GDP grew 6.0% y/y, decelerating from Q2's 6.2% pace.[i] Headlines bemoaned the figure as the “slowest growth in nearly three decades,” which, technically, it was. But this doesn't mean China's economy or the global expansion is on the rocks, in our view. Rather, we think it (alongside other recent data) shows China's economy is slowing, but not slumping—a long-running trend that needn't sink global stocks.