Chinese Government

Do the Chinese economy will continue slowing or? You can the trend reverse? It is clear that China has sufficient internal capacity to recover its growth. The key passes continue to reinforce its domestic demand. Although it will help mitigate the slowdown in external demand, it will surely be insufficient to compensate fully for its fall. Beyond this complicated scenario facing China, positive for its economy is that it will reduce now your external dependency and thus gradually, its domestic demand will begin to have a greater weighting within the same. If you want to, this is a positive consequence of the crisis. This reduction of external dependence would be part of the strategy to be followed by the Chinese Government.

It will help the growth of the economy to mitigate the impact of the crisis on the global economy? China’s economy will slow down this year in relation to 2008. I do not rule out that it could reach 8% that the Government has as objective (would underestimate the potential power of your demand internal), but certainly not exceed this ceiling. On the other hand, this possible 8% not will help to attenuate the effects of the crisis on the global economy. Or even if China were to grow at a double-digit rate again, this would serve for the remainder of the economies. This is due not only to the smaller relative size of the Chinese economy with respect to the American, but that each percentage point of growth of china’s economy has a much higher component of domestic demand (more now with the economic stimulus plan), as observed in the American economy. China will not help to attenuate the effects of the crisis on the global economy. We have to comply with to reach its goal of 8 percent growth that will help sustain its social stability.

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