China Sees a Decrease in GDP Growth
China is a growing country that has been generating a large amount of exports for the past few years but for the first quarter of 2013 China has seen a drop in the growth of their GDP, this is not to say that their GDP did not increase, but that the increase had seen a decrease. The GDP increase was 7.9% in the last quarter of 2012 but for the first quarter of 2013 the GDP had only increased by 7.7%. The global economy has not been doing very well, there are many countries still struggling to recover, and the slow down of GDP growth is not a good sign for the economy.
The slow down in the GDP growth of China may be due to Japan and it’s Yen devaluation, with the value of the yen decreasing, Chinese exports may begin to seem less appealing, and in turn causing their GDP to see less growth. The United States and countries in the Euro zone are also not doing so well, these countries are countries that have a large impact on the global economy, so Japan should rethink their policy on increasing money supply.
Written by: Jessica Ho
Source: The Wall Street Journal