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GDP growth and economic growth in China had slowed last quarter. According to Bloomberg, outputs across Chinese factories and investment spending “eased last month, sapping momentum as credit clampdown adds pressure on the outlook for this year.”
For investors looking for bigger returns than those in the developed markets, the emerging markets are the bees’ knees of returns. Unfortunately for those investors who put their money abroad, their expectations were not met. While growth in Gross domestic product is apparent, at 7.7 percent, it is still a decline from last year, at 7.8 percent, according to the National Bureau of Statistics. While a decline of .1 percent is definitely a sad event for Beijing, the world’s current growth engine, seeing 7 plus percent returns must make western investors drool.
Credit Agricole CIB’s senior economist and strategist analyst Dariusz Kowalczk in Hong Kong comments, “Growth momentum is clearly weakening. The slowdown became increasingly clear as the quarter progressed.” Shanghai’s Composite Index (SHCOMP) was also down by .1 percent, and the yuan was weaker against the dollar.” Reasonably, the Chinese government is looking to expand its economy while reining in inflation. Their target is at 7 percent. No matter what the condition of slowing is and inflation in the region, a 7% growth rate still astounds western investors.
Image: www.whitehouse.gov
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