http://www.bbc.com/news/business-26429663
The 12th National People's Congress(NPC), China's parliamentary body, opened its second annual session Wednesday morning at the Great Hall of the People in Beijing. The new premier Li Keqiang announce that China has set the growth target for 2014 at 7.5% and inflation goal at 3.5%. In 2013, China grew at the rate of 7.7%. It is obvious that China wants a moderate slowdown in the economy. And the recent manufacturing data has also improved this slowdown.
The house market has been heating up tremendously recent year in China and looks like a trend of property bubble. The new NPC promised to address the property market. According to this article, "Slower economic growth is already expected for this year. Tightening of fixed-asset investment and lending are seen to remain as the major focuses."
This article relates to the article that I read about the yuan's value. I think that it is good that they have a target number to aim for and this will help them to actually accomplish their goal. It is interesting that now China's growth rate has dropped from 2013 when it was 7.7%. Will a slowdown help them overall? It seems to me that this would be a good idea in order to stabilize their growth.
ReplyDeleteI don't think that China thinks a slowdown will help them. Obviously, a country wants to see as high growth as possible all of the time, and does not want to see any kind of growth slowdown. At the NPC, Premier Li Keqiang said that because of instability and uncertainty in the world economy, China's economic growth was facing downward pressure.
ReplyDeleteI disagree with Jon's statement that China does not think a slowdown will help them. For decades, China's economy has been growing near 10%. The article is correct to assert that there are fears of bubbles growing in China. One economic bubble that investors fear is a result from China building huge "ghost" cities and a lot of apartments that nobody is using. China currently has 64 million empty apartments, and this is likely to be just one possible bubble that could greatly damage China's economy. China is now trying to implement reforms that will slow down the economy and lessen any possible effects of these bubbles.
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