Societe Generale: A Hard Landing In China Part 2 - Rest Of The World Impact

As one can see in the below chart, China is the crucial trading partner of Korea, the largest trading partner.

From Zero Hedge:

Following on from our earlier discussion of how a Chinese hard landing would evolve, SocGen now examines how a Chinese hard landing would impact the global economy. They see the contagion in several ways: mechanically (since China is part of the global economy) and through trade, financial and market channels. Mechanically, a slump in Chinese GDP growth to just 3% would cut our global GDP growth forecast by 0.6pp. Add to that the channels of transmission to the global economy, and our expectation is that a Chinese hard landing would result in 1.5pp being slashed from global GDP growth in the first year.



http://www.zerohedge.com/news/2013-01-08/hard-landing-china-part-2-rest-world-impact