China’s economic growth slowing to a halt?

Over the past few years China’s economic growth rate has been extreme. So much so that people are starting to question the legitimacy of it all. There is growing concern that the slowing of the economic growth may lead to an altogether crash. This concern stems from facts that “imports in August actually fell, by 2.6% year on year” and “businesses accustomed to two digit GDP expansion” have been reduced to one digit. It is suspicious that despite reporting exceptional economic growth China’s electrical use did not grow commensurate with the growth in the economy, given that so much of their economic growth is based on manufacturing. The skepticism towards the legitimacy and accuracy of the data only fuels this concern. I think this is an issue that should be looked into by future investors who potentially plan on expanding to China. From a business standpoint it is important to know everything about what your investing in before investing, especially the economy your investment will be a part of. Here is a link to The Economist article that expands on this topic.

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