The current narrative states 2016 is off to a turbulent start in terms of the global economy. Oil prices are low, and a slowdown in China’s growth rate means bad news for everyone. But perhaps China’s economy will not be as big of a problem as everyone thinks, according to Standard & Poor’s.

In S&P’s recent webcast, “China and the Global Economy: S&P’s Latest Views on the Outlook for U.S., Europe and Emerging Markets,” economists Paul Sheard, Paul Gruenwald, Jean-Michel Six and Joaquin Cottani discussed how China’s slowing growth rate may not significantly affect the global economy.

China’s economic growth will continue to slow. Gruenwald predicted the growth rate will be about 6.3 percent for 2016, compared with 6.8 percent in 2015. Most of the narrative, said Gruenwald, focuses on the investment side of China’s GDP growth, which at its peak is generally 4 percent to 5 percent of growth and currently is about 1 percent. The focus, howev