But still, we should be worried.
Slower growth in China means slower growth for the rest of the world.
It accounts for one-third of global growth. Jobs, exports, commodity producing nations &8211; we all depend on China to buy stuff from us.
Slower growth in China also means it is harder for China to address its mountain of debt, even with the Communist Party&8217;s undoubted ability to be able to support the economy.
One important caveat: It&8217;s important to remember official growth figures from China should always be taken with a pinch of salt. Growth is thought to be much lower than what Beijing says it is.
A good guide, I&8217;ve been told, is to discount 100 basis points from what the government says to get a more realistic sense of how the economy is doing.
Over the past decade, China has become the largest trading partner for most of Asia, buying up integrated circuits, crude petroleum, iron and copper ore.
So if China slows down and doesn&8217;t buy as much stuff from the region, it slows down too.
Growth in the Asia Pacific region is expected to slow this year to 6% from 6.3% last year, according to the World Bank.
More pessimistic views show&160;emerging Asia growing at its weakest rate since the financial crisis, echoing China.
The US-China trade war isn&8217;t helping either. It may not have caused China&8217;s slowdown, but it is depressing sentiment at a time when China could do without it.
Economists say many of Asia&8217;s economies that sell to China &8211; such as Taiwan, Korea, Singapore, Malaysia and Vietnam &8211; will be hardest hit.
The data is already confirming this. The worry is that as China&8217;s economy slows, consumers there will buy less.
Confidence amongst Asian companies is also wobbly, showing China&8217;s slowdown as one of two main concerns for growth in 2019, along with the US-China trade war.
the numbers are bad compared to what they were..
if india doesnt pick up the slack we could be looking at a big slow down..
and if they stop buying?
when they sneeze we all get pneumonia..
~ by seeker401 on January 25, 2019.
via Follow The Money http://bit.ly/2teQ3E7