| Global Recession Slams China Hard |  |  |  |
| Written by admin |
| Wednesday, 29 October 2008 |
Previously, China was enjoying a GDP rate of 12 plus percent for 2008, but the figure dwindled to close to half of its original value to a mere 6.8 percent. What makes things even worse is the fact that China is suffering similar fate like the rest of the world whereby mega multinational corporations are firing their workers by the thousands. On the other hand, the slump in demand for electronic goods would mean that goods manufactured from China would have no where to go.
Although China’s communist government has devised a $586 financial stimulus plan to kick start the economy, I don’t think that the stimulus plan would has a deep impact on the overall economy.
On the other hand, local companies in China are brutally fighting for a piece of their internal market share. Being one of the most populated countries in the world, China has over 1.3 billion people living in the country alone. I believe that would mean huge potential for local market consumption.
However, what makes things worse for China at the moment is the fact that their stock market has plunged so much since the end of the Olympics 2008, it’s hard to believe that China has the capability to recover from the recession very soon.
|
