How China economy can survive the crisis.
- Posted by Marc on April 18th, 2009 filed in economy
Chinese GDP growth (year on year % change), 1992-2008 (source: FT).
While the major Western countries are struggling to save its financial system, their businesses and ultimately their hegemony, on the other side of the planet, China is using an instrument that the West countries can’t use because they spent all their ammunition. Unlike most industrialisated countries, Chinese government has achieved that bank lending reach to households and businesses. Its GDP is also decreasing its rate of growth because of the brutal slowdown in its exports to the rest of the world, and their inflation rates are already practically 0. But the increase in bank lending to the economy that will help a lot the chinese economy at least in the short term.
Chinese increase in bank lending (2007-march-2009, source: FT).
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September 26th, 2009 at 6:35 pm
[...] are different, the Chinese government has led its banks to lend even more than in previous years. Credit growth in 2009 is reaching 35% ¡¡¡¡¡¡¡¡, 3 times more than in previous years, a genuine madness, [...]