Saturday, April 19, 2014

China GDP slows to 7.4% in first quarter

http://money.cnn.com/2014/04/15/news/economy/china-gdp/index.html?iid=SF_E_River

China's growth has slowed to 7.4% in the first quarter. China's GDP growth is very important to keep an eye on because it is the most comprehensive gauge of the country's economic health. Some experts are predicting there will additional slow growth, while others aren't sure. China is searching to find a source of a more sustainable growth...where do you think they will find it? What do you predict will happen to China's economy? 

5 comments:

  1. China's economic slow down is important for the world to keep close attention to. China is the biggest exports in terms of goods and services and if their economy continues to slow down, it is going to have a big impact on the rest of the world. I thinks China's economy will eventually balance out in term of growth.

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  2. The slowed down rate was in the 3rd~4th quarter of the 2013 growth rate of China. However they are investing a lot more on the infrastructure of the economy, such as railway construction and solar panel purchases, etc., which probably, in the long run, will boost the chinese economy. Moreover their influence in the world market for exports of various products will still let them come back, despite the rather disappointing growth rate last year.

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  3. The central bank of China is intended depreciating Chinese currency, which triggers large-scale capital flight. But it helps strengthen China as the biggest exporter in the world. It is obvious that China is doing some change. We should keep close attention to it.

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  4. As mentioned above, China's growth is very important to monitor as they are a huge exporter. I also think that China's growth has a lot to do with the growth of other countries, since China relies on other countries to buy their products. I believe China will be just fine in the long-run due to the fact that many countries rely on China's exports.

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  5. The decline in China's growth is likely to continue for some time in the future. There have been various problems within the Chinese economy. For one, there has been a lot of recent corruption scandals, which can discourage investment in the Chinese economy. Second, China's economy has been increasing a lot due to various factors, but export revenue and manufacturing investment have been strong variables that have boosted the Chinese economy. If China is slowing down their exports, this will likely decrease economic activity. While some would say that China can encourage more economic activity from consumption, that will not likely cover the decrease in exports and possible decrease in investment in the manufacturing sector of the Chinese sector. The per capita income in China is 6,747, or 83rd in the world. If China's per capita income is low, then people may not have enough money to engage in a lot of consumption to cover a possible loss in economic activity.

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