Is China Slowing Down?
on April 1, 2012
With problems in the manufacturing, housing, and export sectors in China, we will likely see slower gross domestic product growth for the world’s second largest economy in 2012. China’s leadership is changing for the first time in a decade, and its new leaders have suggested that significant shifts in economic and currency policy are unlikely to occur during the transition. However, should China’s leadership remain content with slower growth, the global economy will suffer. If China’s growth loses momentum in 2012 and is coupled with similar losses in the United States and Europe, the recovery disappointment could well exceed that which appeared in 2010 and 2011. Despite these challenges, China has a unique opportunity to demonstrate its maturity as a player in the global economy. Through stimulus measures to its own economy, China could push for a bigger global economic pie rather than increase its share of a shrinking pie and in the process influence global economic growth in 2012.