Posted on 01/15/2016 2:37:19 PM PST by SeekAndFind
China is set to report its weakest full-year growth figure in 25 years on Tuesday on the back of slowing output and sagging investments, troubling news that will likely dominate discussion at the European Central Bank and Bank of Canada policy meetings.
Economists said the expansion of the Chinese economy was held back by sluggish domestic and external demand, weak investments, factory overcapacity and high property inventories, which exacerbated deflationary pressures in the economy.
The poor figures bolster arguments for more Chinese monetary policy easing on top of the six interest rates cuts seen since November 2014 and suggest that more currency depreciation is coming to prop up corporate profitability, bad news for advanced economies.
An even weaker yuan will export China's deflationary pressures to advanced economies that are already struggling with anemic price growth, amplified by a fall in oil prices to 12-year lows.
China's annual fourth-quarter GDP likely slowed to 6.8 percent from 6.9 percent in the third quarter, the weakest reading since the global financial crisis, while full-year growth is seen at a 25-year low of 6.9 percent.
"The Chinese yuan has been caught up in a vicious circle than can but lead to further depreciation of the currency," Nordine Naam, an analyst at brokerage Natixis, said.
"Concerns over the extent of the slowdown in Chinese growth risk fuelling capital outflows and in turn a further depreciation of yuan, to which the People's Bank of China seems resigned," Naam said.
The Chinese government is expected to target economic growth of at least 6.5 percent in 2016, but that could require more rate cuts, increased government spending on infrastructure and easing curbs on the cooling property sector.
ING expects Chinese authorities to restrict international capital flows and tighten systemic regulation so the central bank can cut rates further
(Excerpt) Read more at businessinsider.com ...
Just from what I read of what is showing at the top of this thread, “China” and “Chinese” is mentioned ten times. I guess the author would rather that the takeaway for readers should be more about them than us.
You mean building entire ghost cities and then watching them deteriorate with ever being occupied isn’t a good thing?
When we shipped our jobs to China we put ourselves in a permanent recession so the gloBULL downturns don’t hurt as much and the upturns don’t feel as good.
Who’s watching what now?
I guess it’s a good thing the stock market will be closed on Monday. ;-)
it will be lower than whatever they say..you can’t trust communists!
LOL! So, they are finally going to tell the truth?
And even that report will be an inflated Communist lie.
[China’s annual fourth-quarter GDP likely slowed to 6.8 percent from 6.9 percent in the third quarter, the weakest reading since the global financial crisis, while full-year growth is seen at a 25-year low of 6.9 percent.]
We’d love to have a GDP of 6.8%. Our expectations are so low that we don’t ever think we can get there. The Obama economy is the new normal.
Yet one more reminder that command economies don’t work.
we didn’t ship jobs to china
we subcontracted chinese ( and Mexican and Malaysian and Guatemala and Vietnamese ) labor because the labor here was priced beyond the limits of profitability.
Business if for profit, not paternalistic ideology
What you just wrote would have got you hung from a lamppost in 1776. And deservedly so. Just sayin'
If you really think businesses could not make profit by manufacturing in the USA then you are real misguided ignorant tool of the gloBULList cabal. So tell me Bert until the 1970's we made out own stuff right? So nobody was making a profit?
By the 70’s those countries out of action as a result of WW II were recovered or recovering and able to effectively compete. The smaller pacific rim countries came on in a big way. China is recent, say beginning in 2000 to be effective competition.
When you look back you do not see that the historical fact that allowed America such growth and market strength was the weakness of those countries that were truly devastated in the war.
Further, regarding 1776 and the early history, Massachusetts captured the textile industry that was pretty much English because it was cheaper to produce there than in England. That happened again when the textile industry deserted Massachusetts and moved south to not only better weather but lower operating costs.
The founding fathers were very much citizens of the world and knew the value of profit
the fact some manufacturing left is prima facie evidence that they were unable to make it here any more
BS. Except for Japan non of the Asian countries were manufacturing power houses. We gave them our factories out of stupidity and greed. It is simple as the Bert. We closed our factories and reopened in the Pacific rim. For no good reason except to gain a few pennies on the dollar which wnt to the corporate stock holders.
That happened again when the textile industry deserted Massachusetts and moved south to not only better weather but lower operating costs.,P.Moving South IN THE USA is WAY different than moving your factory to Mao land .
Turn in your patriot card and quit rewritting history....
Go Trump, go!
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