Chinese economic growth falls to 10 year low
While the growth of the Chinese economy is set to fall to a ten-year low when the figures are released on 16 April, an estimated growth rate of 6.3% is no mean feat. However, the fall in the figures hides a substantial reduction in activity within the Chinese economy with exports having collapsed as developed countries in the Western world continue to consolidate.
The Chinese authorities recently instigated a $585 billion stimulus package which saw an increase in manufacturing and bank lending over the last few months. As a consequence, despite the reduction in economic growth, many experts feel we are nearing the trough of the ongoing recession and recovery may only be around the corner. For some reason it would appear that the Chinese stimulus package is working far quicker than similar schemes in the US and UK although in reality we will not see any significant movement in the Chinese economy until the US economy starts to improve.
One thing we have seen over the last few months is the fact that more and more economies around the world are heavily connected, seen to be falling like a line of dominoes when one moves out of sync. However, on the upside, as and when the US economy does recover this will refloat and inject significant activity into the worldwide economy which will in due course benefit places such as China.
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