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China's Q1 GDP growth falls to 8.1%

Discussion in 'China & Asia Pacific' started by tunguska, Apr 14, 2012.

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  1. tunguska

    tunguska Major SENIOR MEMBER

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    The Chinese government has vowed to fine-tune the economy which continued on the declining trend, registering 8.1 per cent GDP growth in January-March this year, the lowest quarterly rise in nearly three years.
    The Q1 growth this year was the slowest in 11 quarters and failed to match market expectations of 8.3 to 8.5 per cent, the National Bureau of Statistics (NBS) said.

    "The current economy is generally in a stable shape, but is faced with many difficulties and challenges," an official statement issued after a cabinet meeting, headed by Premier Wen Jiabao, said.

    Efforts should be made to leave more room for new policies and prepare for hardships and tests, it said.

    The government pledged to improve macro-regulation, enhance the demand management, and make policies more targeted, flexible and forward-looking, state-run Xinhua news agency quoted the statement as saying.

    The statement came after Q1 data showed the Chinese economy slowing from 8.9 per cent in the fourth quarter of last year to 8.1 per cent in the first quarter of 2012.

    The GDP growth of the second largest economy of the world showed a continued declining trend from the first quarter of the 2010 when it grew by 11.9 per cent.

    According to preliminary statistics, China's GDP reached 10.7995 trillion yuan ($1.72 trillion) during the January-March 2012 period.

    NBS spokesman Sheng Laiyun told a press conference that the first quarter growth rate was not low compared with other economies.

    China's Q1 GDP growth falls to 8.1% - Rediff.com Business
     
  2. KAUTILYA

    KAUTILYA Lieutenant SENIOR MEMBER

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    Every country has its ups and downs and given the state of the World Economy this is quite natural.Even India is facing a challenge of decelerating GDP rate but we would hopefully catch up.The real issue is the intentions that a nation has got and how it envisions itself in the future!!
     
  3. tunguska

    tunguska Major SENIOR MEMBER

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    You are right. But point of disucussion is that which are those factors leading to fall in chinese GDP. So we can learn from it and can take the appropriate action so our GDP should not face such thiings.
     
  4. KAUTILYA

    KAUTILYA Lieutenant SENIOR MEMBER

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    You see the gloom of the Chinese economy is that the entire economy is mostly export driven whereas the Indian economy is mostly demand driven and this is a very positive aspect.Now since the Chinese GDP is mainly driven by production that has been pin pointed by the CCP without any sought of introspection there are bound to be massive fallouts,we could take the Chinese real estate bubble and luxury mall bubble as an example and experts say that 75% of housing that are being developed in China right now are not going to be sold within the next 25 years atleast!Moreover the pace at which the infrastructure is being developed in China is so overwhelming that it is unhealthy to some extent in a sense that most infrastructure projects are bound to remain underutilized and tantamount to major losses creating a big hole in the Govt.'s pocket just like the High speed railway corridor.The idea should be to develop according to needs and not to force feed development to people who are still underpaid.Roads,Bridges,flyovers etc should be built as and when required since they represent major investments and the focus should be mainly on uplifting the down trodden masses and educate them to an extent that they themselves demand development within a few years!!
     
  5. Manmohan Yadav

    Manmohan Yadav Brigadier STAR MEMBER

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    RBI had already predicted such a slow down, perhaps thats why
    RBI is liberalized the Lending rates for Industries and come up with
    some innovative schemes for Industrially sick units.

    A number of state governments will be declaring their industrial policy this year,
    I am sure policy of Growth by RBI will be reflected in the
    upcoming state government Industrial policies.
     
  6. tilopa

    tilopa Lieutenant SENIOR MEMBER

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    I have no hope in India.
    India doesn't take critical decisions until its matter of 'either-or'

    Last time it was in 1991 when the country was bankrupt and IMF forced the liberalization.

    Until now,we are just eating the fruits of that decision.

    And after that no major series of liberalization has taken place.Neither does it looks good in the future.
     
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