ATLANTA – With all of the concern in Europe and globally about Greece’s current economic crisis and the possibility of the country falling out of the common European currency, the larger impact on the U.S. economy is the turmoil in the Chinese stock markets, a global economic expert said.
Rajeev Dhawan, director of the Economic Forecasting Center of the J. Mack Robinson College of Business at Georgia State University, said that because of the Chinese stock markets’ fall and lower growth prospects, the repercussions have started to show up in markets for raw resources like oil, aluminum and iron ore, and will go further down the line into copper and food commodities.
“China is now, de facto, the factory of the world,” he explained. “When China is not doing well, its suppliers in Asia – Korea, Japan, Malaysia, Singapore, in the emerging economies of Brazil, Argentina, and Chile, along with Australia – they don’t do very well.”
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