QUOTE(newarsenic @ Mar 29 2009, 04:39 PM)
hi everybdy..newbie here..
last week i heard from eco analyst(forget his name) the 1st nation tht may recover from eco crisis is china..
China is not facing any economy crisis right now, nor in recession. China is still growing at the rate of around 6-8%, which is significant slowdown compared to 10-11% previously. last week i heard from eco analyst(forget his name) the 1st nation tht may recover from eco crisis is china..
If China is in recession, the situation is much more devastating as China economy is not as same with the rest, without growing at certain pace, a lot of problem will be surfacing especially the overcapacity and umemployment side.
So how can the word "recover" can be used?
China is still heavily relied on export and US consumer for their goods. So if worldwide economy doesn't recover, any "recovery" in China has some some certain limit, as it cannot stand on its own just based on its domestic economy.
That's why they put up trillion worth of stimulus package to boost up the domestic demand to offset the export shrinkage and hope domestic demand grow in size and stronger.
Until now, it is impossible for China to take over US economy as main worldwide economy or consumption nation as China economy is about 1/4 of US economy eventhough has 10x population more than US.
Any recovery is worldwide based now as now it is globalisation economy. Just degree or recover may be differ due to competitiveness and dynamic of a economy.
When we see recovery, we see it across, when we see recession and slowdown, we also see it across the world just like what hapenning now.
Mar 29 2009, 05:06 PM
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