Chinese Growth Slows to 7.5% in Q2

by Marilou Long on July 16, 2013

in Foreign Markets,Geopolitical

Chinese growth slowed for the second quarter in a row coming in at 7.5%.  From today’s Stratfor Geopolitical Diary:

The Chinese government announced Monday that the country’s economic growth had slowed for the second consecutive quarter, reaching a low of 7.5 percent. The official number fell within the expected range and was well received by international markets; it marked a high note for Beijing’s ongoing attempts to temper global expectations as it shifts to a more sustainable economic model. However, far more important than the officially sanitized growth numbers will be the outcome later this year of the Central Economic Works Conference, where the Chinese political elite will set the tone of the country’s economic policy.

China appears to be faltering in its efforts to instill some economic maturity, especially in the face of the general global downturn and increased international skepticism over Beijing’s self-reported figures. Concerns over a hard landing for China have prompted calls for the Politburo to ease its commitment to hardline restructuring in favor of some relief measures. Such a move would temporarily relieve economic problems, but could have a negative effect on the credibility of China’s reform efforts.

There was also in interesting article in the New York Times a few days ago titled “Pitfalls Abound in China’s Push From Farm to City“.  It describes the central government’s plans to push more of the populations to towns and cities.

 

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