China GDP Slows to Weakest Since 2009 on Manufacturing Slide

Discussion in 'Economics' started by schizo, Jan 19, 2016.

  1. schizo

    schizo

    [​IMG]

    http://www.bloomberg.com/news/artic...-estimates-as-stimulus-struggles-for-traction

    China’s economy slowed in December, capping the weakest quarter of growth since the 2009 global recession, as the Communist leadership struggles to manage a transition to consumer-led expansion.

    Industrial production, retail sales and fixed-asset investment all slowed at the end of the year, while gross domestic product rose 6.8 percent in the fourth quarter from a year earlier. Full-year growth of 6.9 percent, the least since 1990, was in line with the government’s target of about 7 percent.

    Industrial production posted one of the weakest gains in the past quarter century, increasing 5.9 percent in December from a year earlier. That compared with a 6 percent median estimate of analysts and November’s 6.2 percent.

    Retail sales increased 11.1 percent from a year earlier, compared with the 11.3 percent projected by economists. Fixed-asset investment excluding rural areas expanded 10 percent last year, the slowest pace since 2000.
     
  2. Zestilio

    Zestilio

    Jesus christ, did anyone watch the BBC video? Seriously the most dreary news report I've ever watched in my life.
     
  3. We all knew this would eventually happen. What is positive however is the recognition that China should move from manufacturing to services. It's almost like manufacturing is a stepping stone for transitioning an emerging economy to a more developed economy.
     
  4. Sotnis

    Sotnis

    6.9% is the lowest in 25 years.

    That's impressive as hell especially considering the size of the country and the economy. Most countries would love to have that kind of growth
     
    ETcallhome likes this.
  5. China's biggest problem is just feeding their 1 billion population. And then dealing with the currency predicament they are in.
    They say 300 million people in China have internet access or have purchased something online.
     
  6. So China opens a new stage in its history, they've started a transition to the service economy.
    Also, I thought the numbers will be worse.
     
  7. RGLD

    RGLD

    Color me ignorant, but can you please elaborate more on "currency predicament". I know they own most of out debt, that is all.

    I can google it, but there's just so much information these days. Just give me your short version of it. :)If you are up for it.
     
  8. Oh what a tangled web we we weave
    When we use our currency to deceive

    nothing wrong with currency manipulation until you have to manipulate it both up and down at the same time
     
  9. eurusdzn

    eurusdzn

    Last edited: Jan 26, 2016