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alp227

(31,962 posts)
Mon Apr 15, 2013, 12:28 AM Apr 2013

In Surprise, Recovery in China Loses Steam

Source: New York Times

The Chinese economic recovery lost some of its momentum during the first quarter of this year, official data released on Monday showed, surprising analysts who had expected growth to accelerate on the back of ample credit, strong infrastructure spending and firm exports.

The economy expanded by just 7.7 percent during the first three months of the year, compared with a year earlier, short of the 8 percent that economists polled by Reuters had projected, and slower than during the previous three months, when gross domestic product rose 7.9 percent year-on-year.

Industrial output data for March also underlined the fading momentum. Growth dropped to 8.9 percent compared with March 2012, well below expectations.

The spokesman for the Chinese statistics bureau, Sheng Laiyun, played down the shortfall.

Read more: http://www.nytimes.com/2013/04/15/business/global/chinese-gdp-for-first-quarter-shows-signs-of-slowdown.html

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TekGryphon

(430 posts)
2. What a ridiculous article! 7.7% growth is "losing steam"?
Mon Apr 15, 2013, 12:51 AM
Apr 2013

Are you freaking kidding me? 7.7% growth is phenomenal, and the fact that the growth is slightly retracting is something most would consider to be good. A gradual edging of growth will prevent a sharp retraction down the road.

I usually like NYTimes, but this is just stupid.

Warpy

(110,913 posts)
3. Agreed, but it's tragic to Chinese who thought that 10%+ per year
Mon Apr 15, 2013, 12:54 AM
Apr 2013

was the new normal and that life would always be that way.

Real estate has been massively overbuilt and their main market (the US) is mired in Republican austerity. There is no way they could keep that GDP rocketing up.

Obama would weep for joy if our GDP increased 3.85% in a year, half what the Chinese are doing.

bananas

(27,509 posts)
8. This may put an end to their nuclear build-up
Mon Apr 15, 2013, 08:47 AM
Apr 2013

similar to what happened in the US in 1973 with the oil crisis. Until then, cheap oil fueled electricity growth at 7% per year, but with higher electricity prices, growth dropped to around 2% per year. Reactor orders were cancelled, and many of the ones under construction were abandoned. With lower economic growth in China, electricity growth will also decrease, and they may start cancelling reactor orders.

Also, highly respected and influential scientists in China are calling for a halt to new reactors for safety reasons, the combined economic and safety considerations may stop new reactor construction completely:

Chinese nuclear disaster “highly probable” by 2030
Source: China Dialogue

China is heading for a nuclear accident if it continues with current construction plans, says former state nuclear physicist and prominent critic He Zuoxiu.

<snip>

if China sticks to plans to build another 30 third-generation power stations between 2015 and 2020, the risks rocket.

<snip>

For safety’s sake, it would be better to stop at 41 reactors, a number due to be reached in 2015.

<snip>

http://www.democraticunderground.com/1014429332


Warpy

(110,913 posts)
13. I hope they continue their research into thorium reactors, though.
Mon Apr 15, 2013, 02:26 PM
Apr 2013

I still hold out some hope that the research will turn up something unexpected and beneficial.

Hosnon

(7,800 posts)
10. "Losing steam" = "not going as fast".
Mon Apr 15, 2013, 12:19 PM
Apr 2013

It's accurate.

Plus, I'm pretty sure the Chinese economy must grow at a very high rate to prevent massive social unrest.

TekGryphon

(430 posts)
12. Semantics. The article is trying to play on American patriotism.
Mon Apr 15, 2013, 02:04 PM
Apr 2013

The headline and introduction are both riddled with negative connotations and I find it laughably absurd.

DallasNE

(7,392 posts)
4. China's Economy Is Export Based
Mon Apr 15, 2013, 01:03 AM
Apr 2013

Europe is slipping back into recession. Cause and effect. Next? Oh, and what does the picture on employment and pay look like? Are wages starting to stagnate because if that is the case it would also cause a slowdown in the rate of growth. I'm sure there are some clues that the experts overlooked. Same thing happens here all of the time.

Amonester

(11,541 posts)
5. Unlimited growth is a fairy tale.
Mon Apr 15, 2013, 01:50 AM
Apr 2013

So at least, their environment will be a little less polluted?

Is that a bad thing?

JDPriestly

(57,936 posts)
6. Personally, I think this make sense to me.
Mon Apr 15, 2013, 02:48 AM
Apr 2013

I'm thinking about the increasing lopsidedness of the import/export equation between China and the developed world and the decisions in so many developed countries including our own to place austerity measures and thereby cut consumer spending on Chinese products in place. Makes sense to me that the rate of China's growth in productivity is changing to meet the reduced demand for its goods.

The changes in China plus all the austerity measures. There is a certain random organization to these events.

 

Kelvin Mace

(17,469 posts)
9. Only in an economic system totally divorced from reality
Mon Apr 15, 2013, 10:38 AM
Apr 2013

and totally ruled by greed can a national economic 7.7% growth rate be considered bad news.

 

AverageJoe90

(10,745 posts)
14. It's not going to be the last time this happens.....China is screwed and they don't know it yet. n/t
Mon Apr 15, 2013, 11:41 PM
Apr 2013
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