11/9/08

Big Slowdown in China

From Bloomberg: China's Economic Growth May Slump as Spending Comes Too Late
Gross domestic product may advance 7.5 percent or less, the weakest since 1990, according to estimates by Credit Suisse AG, UBS AG and Deutsche Bank AG. Royal Bank of Scotland Plc predicts the economy will grow 8 percent next year, while 5 percent ``can't be ruled out.''
...
``The golden years have shuddered to a dramatic halt,'' said Stephen Green, head of China research at Standard Chartered Bank Plc in Shanghai. Green is reviewing his 7.9 percent forecast for next year because a ``big fiscal policy package'' hasn't arrived.
If China tries to stimulate their own economy, what happens to US ? US made China's economy bigger with import. At the moment economy is going slowdown and demand vanishes. So that could have negative impact on the U.S economy as much as China.

No comments: