China Tries to Steer Clear of Slowdown
China launches stimulus measures as its economy shows signs of losing steam.
Worries of an economic slowdown are building in China. Statistics released this week indicated that China's GDP grew at 9% in the third quarter, marking the fifth consecutive quarterly decline. For the first nine months, the economy expanded by 9.9%, down from 12.2% in the same period last year. Conditions in the export industry, a key economic driver, were particularly challenging. Trade volume at the annual Canton Fair, an important barometer of China's international trade, dropped by about 10% year-on-year amid global recession worries. The Fair spokesman said the number of buyers from Europe and the United States dropped by more than 30% from last year's levels.
While most countries would be rapturous with a 9% GDP growth, this number indicates a slowing trend for China that is worrisome; China has been growing at double-digit rates for several years and used the rapid economic growth to absorb its huge workforce.
Dan Su does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.