Chinese economic slowdown threat to worldwide revival
Despite the fact that the Chinese economy has shown signs of revival over the last few weeks there is growing concern that an economic slowdown could just around the corner and could potentially unravel the worldwide recovery currently underway. The World Economic Forum believes that there is a 20% chance of a serious economic slowdown in China in the short to medium term which could lead to economic losses in the region of $250 billion to $1000 billion.
Despite the fact that the Chinese authorities appear to have handled the ongoing crisis better than expected, under the surface it would appear that high credit growth is behind the revival. There is now the risk of creating an asset bubble and a volatile growth path in the short to medium term which could lead to a similar situation which we saw in the US prior to the credit crunch. While we are now more aware of what goes on within the Chinese economy than ever before, there are still many areas of secrecy and mystery.
The ongoing disagreement with search engine giant Google has attracted the attentions of the financial press over the last few days but if an economic slowdown is just around the corner this spat will pale into insignificance!
Share this..
Related stories
No windfall for Chelsea building society customers
The £35 billion merger between the Yorkshire building society and the Chelsea building society will disappoint many Chelsea building society customers as there will be no windfall for them. The...The £35 billion merger between the Yorkshire building society and the Chelsea building society will disappoint many Chelsea building society customers as there will be no windfall for them. The Yorkshir...
Read MoreThe real cost of inflation
When inflation moved into negative territory earlier this year there were cries of joy from many areas of the UK population who had seen the cost of living rising year after year. However, there are two sides to the inflation story with negative inflation putting pressure on product and service prices and often instigating significant cost-cutting programmes. This can lead to reduced disposable in...
Read MoreAlitalia airline moves one step closer to collapse
Despite the fact that investors were waiting in the wings for the go-ahead it seems as though a dispute with Unions has scuppered the final chance of saving the stricken airline Alitalia. It seems crazy that the Unions would rather reject the rescue package and see the airline go to the wall than agree to structured job loses and at least employment for some of the airlines employees. So what ne...
Read MoreDavid Cameron could scrap 50p top tax rate
David Cameron has taken a chance with UK voters by suggesting he would look to reverse the UK government's 50p top tax rate if it were shown to raise no money. While his comments have been applauded by Conservative supporters to the right of the party, there is no doubt that the Labour Party will use this to confirm that the Conservatives will look to reduce the tax burden for higher earners in th...
Read MoreTesco set to attack UK broadband market
Tesco's has announced a partnership with Cable and Wireless to attack the UK broadband market with the likes of BT, Virgin Media and Carphone Warehouse now on alert. The five-year deal with Cable & Wireless will allow Tesco to offer broadband and home phone services with the aim of building a £2 billion annual turnover and profits of £200 million in the medium term. This equates to about one ten...
Read More