Post by arfanho7 on Feb 24, 2024 0:34:43 GMT -7
The wheels came off an over exuberant Chinese stock market which had surged over percent in months and hit a seven year high. The consequences were felt by financial markets everywhere. Q Given how opaque China’s economy is does anyone accurately know how deep or lasting this slowdown might be.
The official numbers must indeed be taken with a grain of salt. There is a debate in the marketplace and among economists as to what the future holds. Are we headed for a “soft landing ” a correction that can be managed so that growth albeit at a slower pace will continue to be solid or are we at an inflection point Egypt WhatsApp Number List and we risk a more precipitous deceleration a “hard landing” China has astounded the world for years by growing consistently at percent per year or more lifting hundreds of millions out of poverty. to being the second biggest economy contributing percent to the global GDP and percent to its growth. Exports drove that growth.
Over the past two decades the level of exports to developed markets from China grew on the order of percent per year. And yet the consumption of goods in those markets was only growing by about percent per year. China was therefore grabbing market share “Made in China” became ubiquitous. This was driven in large part from massive outsourcing on the part of companies in developed markets. They were moving production to China in droves because labor was cheap so the economy grew very very fast. In the process of becoming the “factory of the world ” the country needed infrastructures roads ports rails plants cities for the workers and so on.
The official numbers must indeed be taken with a grain of salt. There is a debate in the marketplace and among economists as to what the future holds. Are we headed for a “soft landing ” a correction that can be managed so that growth albeit at a slower pace will continue to be solid or are we at an inflection point Egypt WhatsApp Number List and we risk a more precipitous deceleration a “hard landing” China has astounded the world for years by growing consistently at percent per year or more lifting hundreds of millions out of poverty. to being the second biggest economy contributing percent to the global GDP and percent to its growth. Exports drove that growth.
Over the past two decades the level of exports to developed markets from China grew on the order of percent per year. And yet the consumption of goods in those markets was only growing by about percent per year. China was therefore grabbing market share “Made in China” became ubiquitous. This was driven in large part from massive outsourcing on the part of companies in developed markets. They were moving production to China in droves because labor was cheap so the economy grew very very fast. In the process of becoming the “factory of the world ” the country needed infrastructures roads ports rails plants cities for the workers and so on.