Since 1978, China's economy has doubled every eight years. Today, the
average Chinese person has some ten times the purchasing power they had just a
quarter century ago.
China was the engine room powering the Global boom of
the early 21st century, however there are signs now that the Dragon
is catching its breath.
China's economy has grown at its slowest pace in three years as
investment slowed and demand fell in key markets such as the US and Europe.
Gross domestic product rose by 7.6% in the second quarter, compared with
the same period a year ago. That is down from 8.1% in the previous three
months.
In March, Beijing cut its growth target for the whole of 2012 to 7.5%.
China accounts for about a fifth of the world's total economic output
and any slowdown may hamper a global recovery.
At the same time, many of Asia's biggest and emerging economies are
becoming increasingly reliant on China as a trading partner.
If China's growth does not pick up in the second half of the year then
that will translate into a very difficult second half for a lot of the
manufacturers in this region.
European markets are crucially important to China but with European
economies in a fragile state the implication for Export growth is obvious and the
potential for the euro debt crisis to spread would result in a further decline
in export growth in the months ahead.
No comments:
Post a Comment