China receives growth downgrade from OECD

China receives a growth downgrade forecast from Organization of Economic Cooperation and Development (OECD).

Though at first glance it may not sound much, given expected weakness from China, but it sure is a big blow for Chinese authorities, who envisaged growth of 7% and reiterated their confidence over and over for this year.

It is likely to spur, concerns over Chinese economy given it came from well-respected Paris based think tank.

In 2014, Chinese economy grew by 7.3%, revised from 7.4% by Chinese authorities. OECD expects growth to be 6.7% in 2015 and 6.5% in 2016. Previously back in June, OECD forecasted growth of 6.8% this year.

However it has brighter side too. The forecast is far better than those of Asset managers, surveyed by Bank of America Merrill Lynch (BAML), who forecasted a recession in China next year.

One thing can be said with some degree of certainty, China's economy is no way getting better, which is likely to keep ongoing crisis in emerging markets and routs in commodities continuing further in 2016.