China’s economy may be on the rebound.
April 14, 2012– The economic growth in China has lost more of its momentum at the beginning of 2012. However, signs point to the slowdown changing in the near future. During this year’s first quarter, the economy in China increased at an annual rate of 8.1%. That rate was down from 8.9% in the previous quarter. That figure is low for China, as at times it has raced ahead at a rate of 10% over the last 30 years.
Even though it is low, it is far from what many economists feared would be a hard landing. China has the second largest economy in the world and a major downturn in growth could hurt the global economic growth drastically.
However, indicators in the economy show the growth of the economy in China might have bottomed out recently and it’s starting to recover. A recent government review of its manufacturing sector resulted in an improvement.
In addition, officials in China have a number of tools at their disposal that can help boost the growth in the economy. One such is the money supply, and that has already been increased, as new loans have increased in China.
Last year the economy in China started to slow, as the government made efforts to cool inflation and lower the housing boom somewhat in the country. The shrinking economy in the eurozone and the slow growth in the economy in the U.S. have weighed on the manufacturing and exporting sectors in China.