The 2008 recession had dramatic impact upon the ‘global west’, but had a much less distinctive effect on China. Since the recession, China has excelled, increasing output, economic growth, and employment, but is this coming to an end? China’s economy is considerably slowing down, experiencing unexpected economic difficulties. Global investors are becoming unnerved, real estate prices are dropping, and even manufacturing isn’t showing positive signs. China’s export growth has plunged to barely above zero, and Chinese stocks have taken an intense turn for the worse, becoming available at cheap prices. The economy was 8.1% larger in the first quarter of this year than a year earlier, but most of that growth took place last year, showing the concern for the Chinese economy in global markets.
There is speculation that China will hit the ‘next big recession’. However, unlike the west, China has the potential to stop it before it becomes too severe. The real estate market is already in decline, but should investment endure, then there is potential to save China’s markets. Furthermore, there is further evidence suggesting China is already in a recession, but is more resilient than the west, showing potential for survival.
Should China continue to deepen into a recession, then there is potential for severe consequences globally, seeing as it remains the largest importer of consumer goods, iron ore and copper.
After barreling ahead in recession, China finally slows : http://www.nytimes.com/2012/05/25/business/global/chinas-once-hot-economy-is-turning-cold.html?pagewanted=all&_r=0
Global slowdown predicted after deluge of bad economic data: http://www.guardian.co.uk/business/2012/sep/20/global-slowdown-predicted
Is China in a recession?: http://www.forbes.com/sites/investor/2012/05/23/is-china-in-a-recession/
China can’t hide the recession any longer: http://www.forbes.com/sites/investor/2012/10/16/china-cant-hide-the-recession-any-longer/