Stock markets concerned about Chinese economy
Stock markets around the world appear to be more and more concerned about the short to medium term outlook for the Chinese economy with the authorities looking to dampen the recent recovery in the country. It is believed that the Chinese government is concerned that the economy could "run away" in the short term and we can expect a further tightening of fiscal policies to ensure this is not the case. So what does this mean for the worldwide economy?
There is no doubt that together with the likes of America, China is one of the more prominent economies in the world and an integral part of the worldwide set up. China has also been a pivotal area for the worldwide commodities market and indeed we recently saw commodities prices begin to fall back amid concerns of reduced demand from the country.
As we entered the worldwide recession and as we attempt to pull away from the worldwide recession it is becoming more and more obvious how much the worldwide economy depends upon a small number of the economies around the world such as China and the US. While the euro zone will have a large part to play in the future, at this point in time the direction and the strength of the worldwide economy is being dictated by the two major economies in the world, i.e. the US and China.
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