China's Economy Grows More-Than-Estimated 7.3% in Third Quarter
http://www.bloomberg.com/news/2014-10-20/china-s-economy-grows-more-than-estimated-7-3-in-third-quarter.html
China's economic growth beat analysts' expectations by 0.1%. Analysts had a median estimates of 7.2%. China's central bank has pumped funds to lenders to avoid a downturn in the economy due to housing. China is headed for the slowest full year growth since 1990. The Goldman Sachs Group expects more loosening in policy over the rest of the year. Industrial production rose 8% compared with analysts expectations of 7.5%. Fixed-asset investment rose 16.1% compared with median estimate of 16.3%.
The People's Bank of China has avoid cutting interests rates or banks' reserve requirements to boost growth. They have injected some liquidity into banks. China has expectations of 7% growth for 2015.
The population in China is a factor that might be taken into consideration when economic growth is taken into consideration. China has a restriction on the amount of children that a family can have a certain number of children/child. The population rate has an impact on the capital per worker which in turn has an impact on the economic growth.
ReplyDeleteI suppose this is a good example of how the economy can behave in completely unexpected ways. The fact that an estimation is backed by analysts does not make that estimation full-proof.
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