7 Indicators the Chinese Economy will Slow in 2008
The Chinese yuan gained seven percent last year. Interest rates were raised six times.
Still, the economy grew at 11.5% in the third quarter and 11.2% in the fourth. But, can/will the yuan continue to rise and are there indicators that China's economy will slow or even stop?
There are.
1. A recession in the United states is one.
2. Cooling demand in Japan.
3. Cooling demand in Europe.
These three markets buy up some 48% of China's exports.
4. China's benchmark stocks hit a six-month low yesterday.
5. January manufacturing saw growth in shipments overseas slow.
6. Exports grew at the slowest pace in 5 years last quarter.
7. The stronger yuan has made Chinese goods more expensive.
To be sure, China's economy will continue to grow for sometime, just not as quickly.
When do you think the Chinese economy will slow down?
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