12°c Partly cloudy
6°c Clear
Winnipeg Free Press - PRINT EDITION
New lag in China's growth, but analysts expect spurt
BEIJING -- China's economic growth slowed to a new three-year low, damping hopes it can make up for U.S. and European weakness, but analysts said a rebound might be in sight.
The world's second-largest economy grew by 7.6 per cent in the three months ending in June over a year earlier, down from the previous quarter's 8.1 per cent, data showed Friday. That was the lowest since the first quarter of 2009 during the depths of the global financial crisis.
China's slowdown may have global repercussions, especially when the United States and Europe are struggling. Lower Chinese demand could send shock waves through Asian economies that supply industrial components to its vast manufacturing industry and exporters of oil, iron ore and other commodities such as Australia, Brazil and African nations.
Other indicators, though, including strong June bank lending, which is closely tied to business activity, suggest the low point of the decline might be past, analysts said.
"The Chinese economy has already bottomed out in the first two quarters," said Xiao Li, an economist at the Industrial Bank in Shanghai.
"It is not certain whether or not there will be a strong upward rebound. But at least the economic growth rate will stop coming down," Xiao said.
The slump raises the threat of job losses and political tension. That comes at a politically difficult time for the ruling Communist party, which is trying to enforce calm ahead of a planned handover of power to younger leaders.
China's export growth has fallen steadily and consumer spending has weakened despite stimulus measures that include two interest rate cuts since the start of June.
-- The Associated Press
Republished from the Winnipeg Free Press print edition July 14, 2012 B17
More Business
- Back to Top
- Return to Business
More Business
(1 of 42 articles for today)
Creative industries can fuel a city's economic engine
3:17 AM 0
Poll
Most Popular Business
- Apple uses companies outside US to avoid paying billions in taxes, Senate inquiry finds
- Creative industries can fuel a city's economic engine
- Bridging the gap
- Yahoo buys blogging forum Tumblr for $1.1 billion in boldest move yet under CEO Mayer
- A look at how the struggling French economy compares to Germany's and Britain's
- Manitoba Movers
- 2 men arrested in killing of Las Vegas teen who refused to give up his iPad
- Officials: Senators reach deal on high-tech visas, hurdle to passage of immigration bill
- Apple CEO Cook testifies before Senate panel after report says it avoids billions in taxes
- Microsoft expected to reveal next-generation Xbox at headquarters presentation
- Mounties say crooks passing fake polymer bank notes in British Columbia
- Holiday pump jump debated
- Transcona transformation
- 2 men arrested in killing of Las Vegas teen who refused to give up his iPad
- Driving downtown development
- 3 Ford owners sue in federal court, saying EcoBoost engine is defective
- Chinese court sentences entrepreneur to death in latest crackdown on underground banking
- Apple uses companies outside US to avoid paying billions in taxes, Senate inquiry finds
- Creative industries can fuel a city's economic engine
- Bridging the gap
- Target opens its first Manitoba stores Tuesday
- New structure to be king of downtown?
- Transcona transformation
- Target opens Manitoba stores
- Mounties say crooks passing fake polymer bank notes in British Columbia
- Raising the rent is a good sign
- City to get a touch of glass
- Canad Inns property has personal meaning for owner
- Holiday pump jump debated
- Border-fee idea doesn't fly
- Creative industries can fuel a city's economic engine
- There are lots of I's in 'team'
- Tougher food-safety rules in the works: Agriculture Minister Gerry Ritz
- Ex-'Pegger seeks to grow local businesses
- Late deal in workplace sex-harassment case
- More than a new boss
- Harper heads to South America to check out membership in new trade group
- US Treasury secretary says he has begun tapping federal retiree pension fund to avoid default
- Transcona transformation
- Diversification spurs Exchange Income's growth
- Ex-'Pegger seeks to grow local businesses
- Driving downtown development
- Late deal in workplace sex-harassment case
- More than a new boss
- Bridging the gap
- Viterra plans $20 million capacity upgrade at four Saskatchewan grain terminals
- There are lots of I's in 'team'
- City to get a touch of glass
- Transcona transformation
- New structure to be king of downtown?
- CEO, execs terminated at TCIG
- Target opens its first Manitoba stores Tuesday
- Canad Inns property has personal meaning for owner
- Winnipeg's got the REIT stuff
- Older and jobless? Resource on hand
- Winnipeg Boeing plant set to expand
- Local boy leads Great-West
- Local firms seek Competitive Edge in aerospace industry
Ads by Google
You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.
Have Your Say
New to commenting? Check out our Frequently Asked Questions.
The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.