Economists Sceptical As China Grows At 9.1%

October 22 00:00 2011

New York, Oct 22, 2011 (RainbowNewsLine.com) – The engine of world’s economic growth, the Chinese economy has seen yet another quarter of lower than expected economic growth. In the first quarter of this year China had seen an economic growth of 9.7%, which came down to 9.5% in the second quarter. In the third quarter, the growth has come down to 9.1% and this has sent alarm bells ringing to economists all over the world. If the world’s fastest growing economy is seeing a slowdown, then the western world may very well be in a recession soon.

The biggest hit that has been taken by the Chinese economy is because of the slowdown in the western nations. China has predominantly been an export oriented nation. The rates of growth of its exports have fallen sharply, while the imports are rising at an accelerated rate. Some economists say that this is good for the world economy as Chinese customers are producing demand that the others can supply.

The Chinese stock markets have reacted negatively to this news. This is because it comes on the heels of the growing concern about the availability of funds to the Chinese small enterprise. The outlook on China may not be so positive in the short run.

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