A study by the International Monetary Fund (IMF) suggests that a 1 percentage point increase in China’s growth rate, sustained over five years, will produce an additional 0.4% of growth for the rest of the world, Bloomberg reported. The study argued that the "spillover effect" of Chinese growth varies according to geographical distance from China, but that the effect of geographical distance is lessening. China stimulates global growth through trade, capital flows, tourism and business confidence. China’s economic growth has slowed in recent months as the government attempts to cool overheated sectors, but the country is still set to overtake Japan as the world’s second-largest economy.
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