All eyes on China weakness amid mixed global recession outlook

And while falling export prices help the rest of the world combat inflation, intensifying competition can mean job losses and a further hit to consumer spending in the longer-term. In Europe, the IMF forecast that the German economy, with its uniquely large exposure to Russian gas and to Chinese demand, would shrink 0.3 per cent this year, while most other big European countries could still avoid recession. Growth in the second quarter was flat. Inflation is not coming down as quickly as elsewhere in Europe. For Australia, weakness in China will show up in exporters' profits and national income, and…