China G.D.P. Growth at Slowest Pace Since 2009, Data Shows

            This article written by Neil Gough of the New York Times is about the uncertainty of the Chinese economy and the recent drop in GDP.  The article states that the Chinese economy grew at 6.8% in the fourth quarter, which is the lowest quarterly expansion since the global financial crisis in 2009.  Investors are trying to determine if the drop in Chinas GDP will spread and affect the rest of the world financially because it is the world’s second largest economy.  Li-Gang Liu, the chief economist for greater China at the Australia and New Zealand Banking Groups, predicted that there are no signs of growth and that we will see another two years of a slowdown.  One reason for the recent crash is that China’s export base in lower-end manufacturing has slowed down. Lower wages in Southeast Asia and South Asia are destroying the competitiveness of Chinese factories.  Another reason is that a slump in housing construction is decreasing the consumption of building materials.  The economy is showing no signs of rising and investors worry about the future of China’s economic health.  The Chinese stock market is plunging, but some say that the fluctuating stock market does not play a major factor in the health of the economy and they are unrelated.  The future health of the Chinese economy is uncertain, but investors are hopeful that we still start to see a rise in China’s GDP in the couple of years.

http://www.nytimes.com/2016/01/19/business/international/china-gdp-economy.html?ref=economy