• Investing & Markets

Keep an Eye on the Waning Chinese Economy

October 18, 2011 | Daily Capital

Amidst all the noise surrounding Europe and Occupy Wall Street, it’s important to keep an eye on China’s economy. Third quarter GDP growth of 9.1 percent clearly moderated and was below consensus expectations. But like other weaker than expected data points, this by itself cannot confirm or deny a hard landing in China. It’s merely another warning sign. China’s economic report also showed indications that increasing domestic demand could at least partially offset declining exports.

China, Our Last Engine, Loses Altitude: The Ticker

You know the world has gone mad when 9.1 percent growth disappoints markets. Yet today’s news, that China couldn’t produce a bigger figure in the third quarter, did just that in Asia today. The disappointment reflects China’s status as our only true growth engine as U.S. unemployment rises, Europe unravels and Japan’s funk deepens. And now the No. 2 economy and the only sizeable source of dynamism is operating at its slowest pace since 2009. Markets, understandably, are taking it hard.

Read the entire story at Bloomberg News.

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