Because of the global financial crisis in 2008 – 2009,China’s economy began to slowdown. The RGDP of China fell from 11.4% in 2007 to approximately 8% this year. The World Bank forecastsChina’s economy to grow by 7.7% this year, down from its projection of 8.2% in May. The main reason that it gives is that “China’s exports have been hurt by economic problems in the eurozone and theUS, two of its biggest markets” (News Business).

Another reason for why the World Bank lowers china forecast is that Chinese government has done a lot of stimulus policies to keep the growth stable. The measures helped the economy sustain growth, but it also brings other effects. There is a sharp increase in property prices in the country and people fear about asset bubbles being formed. Government tries to use other measures to help to keep property prices in check, but theChina’s growth may be hurt again.

The World Bank added that “the role of investment inChina’s growth had also reduced over the past year” (News Business).

The bank not only lowers it’s the forecast about china, but also lower the wake of a slowdown in exports from the region in theEast Asia.

Economic measures always have two sides of the economy, such asChina’s measures. The measures that china used to help rising the growth of the economy were worked, but they also brought inflation to the country. It helps in one side but also brings impact to another side. Keep thinking comprehensive and choose the best choice is always important.

The orginal resourse: BBC NEWS,  http://www.bbc.co.uk/news/business-19867402