China’s GDP grew at a 3-year low of 7.6% in the second quarter of this year. Will the engine of the global economy continue to drive forward?
The Euro-zone crisis and a slow US economy has lead to a slump in Chinese exports. Domestic growth, especially investments have slowed down too. Nissan and Toyota have reduced their output in China due to a reduction in demand.
http://www.bbc.co.uk/news/business-19725269
A slowdown in China means that much of neighbouring South East asia will be affected. Even Brazil will feel the affects as the slowdown in Chinese demand for commodities will reduce Brazil’s exports dramatically.
http://www.bbc.co.uk/news/19709213
Is the chinese economy affecting the global economy? Or are global factors such as the Eurozone crisis affecting the Chinese economy? The world’s economies are too interdependent to run on their own – China has really established itself in a wide range of markets and as a key trading player, whatever happens to the Chinese economy can be felt throughout the world. If unfortunately the chinese economy was to cripple, who would drive the global economy? Amongst the current downturn, there are some exceptions in South East Asia such as the Philippines, Indonesia and Thailand have seen a boom in investment spending. Are these South East Asian markets the next global powerhouses?
Articles:
http://www.reuters.com/article/2012/10/08/us-worldbank-asia-outlook-idUSBRE89701420121008