China Falls Short
Analysts described China’s recent economic expansion as a “a big disappointment” and a “truckload of unpleasant surprises.” Data released on Monday showed that the country’s growth had unexpectedly lost steam; it expanded 7.7 percent in the last three months, but fell short of the forecasted 8 percent. As a result, banks such as JPMorgan Chase, Royal Bank of Scotland and Société Générale have reduced their growth forecasts for China.
Zhiwei Zhang, a China economist at the Japanese investment bank Nomura in Hong Kong remarked “We have been expecting growth to slow down again, but not until the second half of the year,” and he predicts that “The next couple of quarters will bring more headwinds, and growth will probably trend down even more.” Following the country’s mediocre economic growth, policy makers have to struggle between maintaining growth or containing financial and property market risks. Mr. Zhang adds “I don’t envy them,” and “They have a very difficult job to do.”
Written by Kevin Zhang
Buckley, Bettina Wassener And Chris. “In Surprise, Recovery in China Loses Steam.” The New York Times. The New York Times, 15 Apr. 2013. Web. 15 Apr. 2013. <http://www.nytimes.com/2013/04/16/business/global/in-surprise-recovery-in-china-loses-steam.html?ref=business>.