UPDATE 1-China crisis would knock some 1.5% off German growth – Bundesbank

An economic crisis in China would knock some 1.5% off German economic growth and likely hurt its banks but an outright decoupling from the world's second-largest economy would be much worse, the Bundesbank said on Wednesday. According to its simulations, real German GDP would be 0.7% lower in the first year of the crisis and just under 1% in the second year as a result of lower exports to China, which is Germany's fourth-largest market. China is struggling with distress in the housing market, local government debt and weakening global demand, adding to fractious trade and geopolitical relations with the West.