This article talks about how the Chinese economy is performing better than what was expected. Even though we saw that the growth rate slipped in 2012 to 7.8 % the slowest since 1999. This was a huge worry because china is the second largest economy.
The economic conditions are getting better as it can be seen with the help of the trade data and also that both the export and import figures were about 5 to 8 % points above the market expectations . The exports were up to 25 % , higher than the 17% that was predicted . An increase in domestic demand lead to imports being at 28.8% . The Chinese lunar new year plays a major role in the economy because many factories are closed during these times which has an impact on the number of goods and services which are produced and the increase in demand is seen right before the new years. Overall we can see a pretty good sign of recovery.
http://www.bbc.co.uk/news/business-21378048
The economic conditions are getting better as it can be seen with the help of the trade data and also that both the export and import figures were about 5 to 8 % points above the market expectations . The exports were up to 25 % , higher than the 17% that was predicted . An increase in domestic demand lead to imports being at 28.8% . The Chinese lunar new year plays a major role in the economy because many factories are closed during these times which has an impact on the number of goods and services which are produced and the increase in demand is seen right before the new years. Overall we can see a pretty good sign of recovery.
http://www.bbc.co.uk/news/business-21378048
Yes it appears that China is recovering but i did not understand how close down of factories increases the overall gdp?Shouldnt it reduce aggregate supply in the economy?
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