Sunday, October 19, 2014
China Poised for Slowest Growth since Financial Crisis
Since 2009, China has experienced growth of around 10% for each of its quarters. However, with the United States economy appearing to be getting back on track with its recent jobs report and other financial indicators, China seems to be experiencing a bit of a lull. Many factors could be partially responsible and the article goes into no detail about such possibilities, so I will speculate on some. Europe is in a tough spot economically and this lack of buying power may be a reason for China's lack of growth, with Europe being one of its largest importers of goods. The real possibility of democracy coming to China could also be at play, as political uncertainty can impact investment.
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Since China is one of the biggest economies in the world, and big on exports and imports, it is no surprise that it would be impacted by Europe's economy. The article stated that although the political climate in China is unstable, it does not really have a role in the state the economy is in now, which does surprise me. Especially since China is so populated, I expected politics to impact the economy.
ReplyDeletePopulation again plays an important role in economic growth because in comparison to USA, China has a larger population although they are trying to restrict it via family policies. China's exports play a big part in its economy compared to most economies hence the difference in economic growth
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