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William Pesek

China's Economic Troubles Start to Spread

The world's second-biggest economy could cause a global recession.
Contagion is underway.

Contagion is underway.

Photographer: MARK RALSTON/AFP/Getty Images)

Singapore is the closest thing Asia has to an economic barometer. Its highly open, trade-reliant economy usually signals when trouble is approaching the global stage. And at the moment, Singapore is flashing clear warning signs.

The city-state's gross domestic product plunged 4.6 percent last quarter, a downturn almost certainly triggered by China. Singapore's plight may mark a dangerous inflection point not just for Asia, but for the entire global economy.