China's Growth May Finally Slow at Worst Time for World Economy

China's Growth May Finally Slow at Worst Time for World Economy

www.bloomberg.com

Jan. 14 (Bloomberg) -- China is starting to gain control of its turbocharged economy, just as a U.S. slowdown raises the risks of doing so.

A narrowing trade surplus and declining money-supply growth are among the first signs that the world's fourth-largest economy is pulling back from its fastest expansion in 13 years. The government has raised interest rates six times in a year, restricted credit, frozen some prices and let the currency appreciate to damp growth and inflation.

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After a long period, the Chinese government is starting to cool down it's economy, just as the world is depending on them to maintain global economic growth.

I'm hearing GDP to drop to 6 - 7%, which is a moderate and stable rate. Do I think this will have huge effects? Honestly, No it won't. Many doom and gloom hawks will think otherwise, but this is positive news for the world.

www.bloomberg.com
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reply to post by infinite


Okay I've mentioned this many times -- economics isn't my strong point. Can you explain why this is good? I thought that with the US economy slowing down, a Chinese slow down would mean that she wouldn't be picking up the slack. Or is this too simplistic?

The price of oil and raw materals should go down i would say that would be GREAT for the rest of the world.

mikell