This is the first time after 2008 when recession was at its peak that China's GDP declined sharply. This has stopped the growth engine which from the past few years was not looking to slow down. In the last quarter of 2011, China's GDP fell down to 8.9%. The economy which was consistently growing with double digit GDP (except 2011) recently has now declined sharply. Still 8.9% growth rate is not bad. Countries love to have growth rate of 8.9% but what worries China is the steep decline.
What worries more is JP Morgan forecasting that it will further decline to 7.2% in the current quarter. Among the world's major economies, Europe is widely forecast to slump into recession this year, Japan to limp along at growth of roughly 1% and the U.S. to be lucky if it reaches 3% growth.
What worries more is JP Morgan forecasting that it will further decline to 7.2% in the current quarter. Among the world's major economies, Europe is widely forecast to slump into recession this year, Japan to limp along at growth of roughly 1% and the U.S. to be lucky if it reaches 3% growth.
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