Beijing (CNN) – Chinese first quarter GDP data showed a fall in year-on-year growth to 8.1% for the first quarter of the year, compared to 8.9% in the last quarter. This relatively sharp slowdown in growth will clearly increase concerns about a hard landing in the near-term. However, many analysts expect that growth will stabilize and recover modestly over the rest of the year as external conditions improve and China's domestic policy is fine-tuned. China's goal is to modulate the speed of growth by tapping on the brake to slow down without hard landing. In his "state of the nation" speech at the annual session of China's legislature, Premier Wen Jiabao said the goal is slower but "more sustainable and efficient" economic growth. Premier Wen also set inflation target at 4% and pledged to create nine million new jobs in towns and cities. He spoke of boosting domestic consumption, increasing spending on social services and raising incomes, as well as expanding consumer credit. The shift calls from more domestic consumption instead of relying on investment and exports for economic growth. "We aim to promote steady and robust economic development, keep prices stable, and guard against financial risks by keeping the total money and credit supply at an appropriate level, and taking a cautious and flexible approach," he said. But experts say China faces nagging risks, including eurozone's debt crisis, domestic property sector, government debt and growing social tension. Chinese officials hope to maintain economic stability this year – a crucial year of transition for China’s top leaders as both Premier Wen and President Hu Jintao finish their last year in office. |
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Ponsonby, my old hood, gets a shout out in the NYT nyti.ms/ZgMjzt
RT @BenLyons1: I'm taking part in a CNN tweet chat on Monday at 12pm on the effects of the downturn on inequality:
edition.cnn.com/2013/05/24/bus… #…
RT @karlrygh: Join @OECD youth reps as @cnni hosts tweet chat Monday. Topic: Has crisis fed rich & robbed poor? #inequalityCNN http://t.co/…
CNN is hosting a tweet chat Monday: Has crisis fed the rich + robbed the poor? #inequalityCNN 27/05, 1pm CEST on.cnn.com/12B8zAL
RT @LaurenMoorhouse: CNN #business tweet chat - Has financial crisis fed rich + robbed poor? Join conversation on 27/05/13 #inequalityCNN h…
updated 922 GMT, May 25
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All those lights, and yet people will backstab you at the drop of a hat.
It would be crazy to think that China will sustain 9% growth forever. As the size the economy grows, the growth rate will inevitably reduced. 7-8% should be considered "good" rather than "tragic".
Undoubtedly China is one of the biggest growing economies of the world.
Send Rakhi to India
I wish ! but II am not opitimistic it can reach even 7.9% increassing
I'm dumping my China stock, just to be on the safe side.
They need to ensure real estate prices don't soar, by granting housing permits easily. The biggest hindrance to quality of life is when you have high real estate prices. It's just money wasted. The government should not fix prices, but it can definitely help reduce real estate prices by granting building permits and allowing investment.
GOOD
You don‘t konow China,unless you live with ordinary beings for a long time.Most of your opinion towards China are ridiculous.
沙发
well spoken guys
The Chinese officials will find out that it's really hard to engineer a soft landing. They already spent their bullets after the 2008 financial crisis – the massive stimulus payed for building large ghost cities in the middle of nowhere. With investment / GDP ratio of over 40% the chinese economy has to either keep growing super-fast or crash soon. I believe the latter is more likely.
By the way, why use Shanghai's pic if you are writing from Beijing? :)
Mitch
China is falling down.
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It is funny to see so called professionals to describe a 8% growth as 'crash landing'. Meantime, most countries are happy to have a 2-4% growth. Instead of trying to get news headline, how about the proper way of describing China's economy is still flying, although at a slower speed. At its current size, it is hard to maintain a constant 6%-8% annual growth.
Couple of years ago most people are concerned with a slower growth because of possible social unrest due to unemployment. Nowadays it is apparent that most people were wrong. There are jobs in Guangdong province left unfilled because most people like to work close to their homes. Local governments have adopted official policy to double the salary within five years to promote domestic consumption.
China is just a developing country!
My wife and i both are bachelors，we work hard six days in a week ，but after a moth，just 800 dollar left。we are Chinese people。
This story is from Beijing, yet the beautiful photo is of Shanghai's night skyline across the Bund towards Pudong.
CNN, couldn't you find a similar photo of Beijing?
To fueson: you are lucky to have 800 dollars left every month. Most Americans live from paycheck to paycheck and have nothing left after they pay their bills.
China is going to the dead end as economy will fall sharply and social turmoil will follow for the corruption and jobless
Its like you read my mind! You seem to know so much about this, like you wrote the book in it or something. I think that you could do with a few pics to drive the maessge home a little bit, but instead of that, this is fantastic blog. A great read. I'll definitely be back.
certainly like your website but you need to test the spelling on quite a few of your posts. Several of them are rife with spelling issues and I find it very bothersome to inform the reality however I'll surely come again again.
Yaa i am agree with Johan S, The government should not fix prices, but it can definitely help reduce real estate prices.
Send Rakhi Gifts to India