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China Tries to Steer Clear of Slowdown

China launches stimulus measures as its economy shows signs of losing steam.

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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. 

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Dan Su does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.