Chinese economic growth slows to weakest in 24 years, missing official growth targets for the first
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[quote][B]China's economic growth slowed to its weakest in 24 years, expanding 7.4% last year from 7.7% in 2013.
[/B]Growth in the world's second largest economy missed its official annual growth target of 7.5% for the first time in 15 years.
But, the annual growth figures still came in higher than market expectations of about 7.2%.
China's economy expanded by 7.3% in the October-to-December period from a year earlier.
That fourth quarter growth was unchanged from the previous three months, but also slightly above economists' expectations.[/quote]
[URL]http://www.bbc.co.uk/news/business-30876464[/URL]
7,4%?
Fuck man, that is, INDEED, a lot
Is there really the expectation that China will continue to grow at the same pace indefinitely? It's going to slow down as it gets bigger - and 7.4% is anywhere from slow
That bubble is gonna pop soon
[QUOTE=Swineflu;46986743]That bubble is gonna pop soon[/QUOTE]
It'll be interesting to see how the world reacts. I expect some protests and riots over the rising prices of computer parts and the like.
[QUOTE=butt2089;46986735]Is there really the expectation that China will continue to grow at the same pace indefinitely? It's going to slow down as it gets bigger - and 7.4% is anywhere from slow[/QUOTE]
What's important is that it's slowing faster than expected, or desired in China.
This is easily predictable. Standards of living are steadily rising in China and with that comes higher wages. Higher wages means less companies are willing to export their business to China and they look for cheaper sources of labor (Bangladesh).
[QUOTE=JoeSkylynx;46987040]It'll be interesting to see how the world reacts. I expect some protests and riots over the rising prices of computer parts and the like.[/QUOTE]
The bigger effect will be the value/price of debt and investors getting spooked.
Once China's economic growth pops, its going to hit. Hard.
The days of double digit growth in China are long gone, but I'm dim to this idea of a fantastical Chinese collapse. Every economy has bubbles, some burst, some deflate, some never pop at all. China is cooling, yes, but they're not collapsing.
What should actually be more concerning is the near 0 growth in the Eurozone, and the spectre of deflation there.
[QUOTE=Swineflu;46986743]That bubble is gonna pop soon[/QUOTE]
Not really, their banks are too regulated, what will happen though is they will have massive state firms fail and trying to prevent a crisis, they will keep paying to keep these firms from defaulting which will drag their growth down, but that's about it
Also their housing market is way overinflated because Chinese use property and speculation as a form of savings because of the tight restrictions on investment which means when the housing prices fall ( which they will) then the millions of empty properties that were bought purely as a means to store cash will drain away the savings of chinas middle class
Again not nearly 2008 levels of bad but more like chains that drag everything down
There'll be a day where another country will overtake China, albeit it won't be very soon.
[QUOTE=Srillo;46987583]The days of double digit growth in China are long gone, but I'm dim to this idea of a fantastical Chinese collapse. Every economy has bubbles, some burst, some deflate, some never pop at all. China is cooling, yes, but they're not collapsing.[/QUOTE]
Bigger problems in China are probably more with their ethnic conflicts, religious troubles, ecological damage, corruption and inequality, plus the exponential growth of the internet and decentralization of the country. The CPC is going to find it hard to navigate their way through it all.
7.4? I Think history is close to repeating itself
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