Unit 4 Macro: Growth Slowdown in China

The pace of growth of the Chinese economy is weakening with new data showing an annual growth of real GDP dipping to just over 7%. China's economy is re-balancing away from investment and exports towards consumption. But at present there is a squeeze in household spending. Consumption in China contributed 60.4% to GDP growth in first half of 2012, only 45.2% in the first six months of 2013.

We link here to some resources on the issues surrounding the reduction in growth rates for the Chinese economy.

Financial Times

BBC News - Feeling the effects of China's economic growth slowdown (July 2013)

BBC News - Fears over China's credit crunch (July 2013)

Wall Street Journal - Winners and Losers from the Chinese slowdown

Washington Post: Slowdown in growth tests reform plans (July 2013)

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