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More on China's GDP: Q1 annualized growth dips to 7.4% from 7.8% in Q4 and below the government...

  • Friday, April 13, 2012, 9:13 AM ET
    More on China's GDP: Q1 annualized growth dips to 7.4% from 7.8% in Q4 and below the government target of 7.5%. Consumption spending contributed 76% of the growth vs. a 10-year average of 42%. Real estate was the main drag with prices, floor space started, and floor space sold all in negative territory.
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This news story has 7 comments:

  • I think this is what the rebalancing optimists were looking for. Seems like a step in the right direction.
    13 Apr 2012, 09:18 AM Reply Like
  • The problem being that such rebalancing presents problems for specific industries, for whom it's not the same if China grows based on consumption or investment.
    13 Apr 2012, 09:22 AM Reply Like
  • China's export growth will increase (it already has been), as a result of the expanding U.S. economy, and that will prove to be a higher-quality contributor to the economy than artificially-enhanced internal growth, e.g., real estate.
    13 Apr 2012, 09:26 AM Reply Like
  • I agree. But in the global situation we find ourselves in, it is impossible to have our cake and eat it too!
    13 Apr 2012, 09:27 AM Reply Like
  • The slowdown was predicted by the inverted Chinese yield curve almost a year ago which is why I find it interesting that there is so much surprise from pundits about the slowdown.

    Just goes to show we live in a world with an attention span measured in 140 characters.
    13 Apr 2012, 09:25 AM Reply Like
  • A year or more ago, the "cw" was that China's economy was overheated and needed to be slowed down. The Chinese government embarked on a plan to do that by constraining credit. Of course, as usual, that prompted the typical hysteria that China would crash. Now, instead, they've pretty much achieved exactly what they set out to do, and are re-expanding credit now to assure that growth doesn't decline further.

    Some folks are never happy no matter what happens.
    13 Apr 2012, 09:32 AM Reply Like
  • Some sectors, such as residential RE, were under a clear bubble, and once they turn south they'll keep going south for quite a while, not the least because a good part of demand existed just because prices were going up.
    13 Apr 2012, 09:35 AM Reply Like
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