China grows at slower pace

The World

It’s a balancing act to manage one of the world’s fastest growing and most dynamic economies. A few months ago, China’s leaders were trying to bring down inflation, but now the worry is about slipping economic growth. This statistics spokesman says third quarter growth is down to 9% and there was also a decline in the growth in the first three quarters of the year. This specialist says China’s economy is still doing ok, even with the global economic slowdown. Already slowing demand has reduced China’s exports and that’s led dozens of Chinese factors to close or move further inland, where operating costs are lower. The costs of labor and energy in China have also risen. So prices of Chinese goods could be risen to cover those costs, but higher prices would make products less competitive. The government is offering more tax rebates for exports and encouraging banks to lend more money to small and medium sized businesses to stimulate production. This analyst says the fact that growth is slowing at all is sending a warning to the Chinese Central Bank. All analysts agree that China is in good shape to weather rough international waters if it steers a prudent course and keeps the wind in its sails.

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