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THE CHINESE ECONOMY has recorded its slowest economic growth in three years – but has still seen its output rise by over 8 per cent in the last year.
Figures published today showed that output in the first quarter of 2012 was up by 8.1 per cent on the same period in 2011, making the smallest annual growth since the second quarter of 2009.
By comparison, the Times of India notes, growth in the last quarter of 2011 had been up by 8.9 per cent on a year previously.
The figures could be interpreted as a sign that China’s rampant growth is beginning to become more measured, as demand for its output falls elsewhere.
A Chinese slump would also have an impact in oil markets, and could pose political difficulties for Communist Party as it prepares to hand over power to a new generation of leaders later this year.
The Wall Street Journal said the figures indicated that China was moving towards a policy of ensuring its growth could be stabilised and supported, and that it was beginning to pay less attention towards managing inflation.
Analysts admitted that the growth was disappointing, but took positives from the fact that native Chinese consumption now accounts for more and more of China’s output.
The WSJ said consumption now accounts for 76 per cent of China’s output, compared to just 51.6 per cent a year ago. This helped to keep up the growth in GDP while spending on government infrastructure dropped from 54 per cent to 33 per cent.
Another analyst told the Daily Telegraph that property prices were beginning to adjust, as domestic house sales began to slow.
The signs that China is willing to allow higher rates of inflation than before may led to an adjustment in the value of the yuan, a move which will be welcomed by western countries who say China’s undervalued currency has provided an unfair commercial advantage.
This prospect is further heightened by suggestions that China will need to boost the monetary supply in order to stop growth from further deterioration.
Stock markets in Asia were not hampered by the news, with markets in Shanghai, Tokyo, Hong Kong and Singapore all making moderate gains in Friday’s trading.
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Communism doesn’t work !
I saw on the TV that china are sending their workers to work in the mines in Zambia and in the forrests in Brazil that they own. This is a result of their work ethic of 7 days weeks with 10 to 12 hour days. As the work dries up in china I expect them to export more workers to Europe and wherever else they own. Our government have just agreed to grant more visas and set up a hub for the Chinese entry point to the EU. We ate selling our soul to the slave masters.
“as the work dries up in china”??? uneducated claptrap, only germany exports more than china and that will soon reverse, they are buying as much of africa,asia and south america as they can for 3 reasons, food production to feed their massive population, mineral aquisition to supply their massive industrial production demand and energy production as a commodity to sell to europe and north america, one such plan is the covering of deserts with solar panels, my brother works for a chinese shipping company, they build cities to produce specific items like solar panels or oil pumps, within the next 3 years they will over take the usa as the worlds leading economy, their major advantages is their work ethic and flexibility, as the work dries up in china indeed, also they are building casinos all over the world, in the last 5 years the chinese have built more casinos in asia than all casinos previously built in the rest of the world combined
Their work ethic is impressive, however life is absolutely worthless there. If China becomes the leading world power, which it will, in next 5 years, it will represent a massive threat to democracy and freedom and could lead to rights we have taken for granted being rolled back.
It’s the land of the indentured slave.
When the Chinese are the next super power we will wish we had the americans back. Their work ethic is a slavery work ethic – and its not communism its capitalism with Asian values. I saw the zambian workers, they said the Chinese are the worst to work for.
Ah no it only grew by 8%, how will they manage ! They should come back here for some lessons from Bertie.
Er, basically this is another sign that international capitalism is in meltdown and only communism can save the oppressed masses…er……
I take it dave from your comment you have never been to a communist country
I’m pretty sure Dave was taking the piss guys.
see what happens when you sell your kidneys for an Ipad!!!
I was watching an analyst on BBC earlier who stated that at this stage anything below 7% growth on China would basically be viewed as a recession by the markets… nice for some!
The analyst on c4 also suggested that at the worst case scenario if economic growth serioiusly stalls in China the party may choose the option of uniting the people against the threat of an outside enemy to stop the huge population turning on itself.
broken china in the 1 percents display cabinet , they wont be happy
8.1%????…..Christ we’d take a quarter of that!
so 8.1 % means the total size of the Chinese economy doubles every 9 years. Physically impossible. there isnt enough resources or markets in the world. Oil peaked in 2006 and Chinese export economy is impossible without oil at a reasonable price.
@revolting peasant ‘mineral acquisition’ is a very tame way to describe resource plunder and environmental destruction.
That’s what a visit from Enda can do.
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