Sunday, March 10, 2013
China's Ecinomic Data Show Weakest Start Since 2009
China saw the weakest industrial output start to the year since 2009. New loal currency loans fell to 620 billion yuan in February, which is lower than the estimates, but exports increased 23.6 percent in the first two month of the year. There are positive signs of U.S. economic recovery which means that the demand for Chinese exports will continue to be high. Reliance on the U.S. economy is high and could help China in sustaining its GDP growth, but there are still significant internal problems. The growth in retail sales was below projections in January and February, and the efforts to crackdown on governmental corruption has revealed significant spending issues. Economists also show worry of higher inflation and government might have to put in place the policy to contain inflation in a short term.
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Even though the U.S has a very large economic influence on the world, China needs to find a way to become more independent from the U.S. They could do this by lowering their exports and becoming a more rounded economic nation. To do so it is important they keep their inflation rates under control.
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