Is China's economy in trouble?
Central Bank of China made announcements last week that
it would be reducing the reserve requirement ratio for commercial
lenders to maintain the liquidity for China's financial system. This
move is seen by the global markets as a reaction to the first quarter
GDP results for China that showed a slower growth rate of 8.1%
annualized verses the expected 8.4% that analysts were expecting. Zhang
Zhiwei, Chief China economist at Nomura Holdings Inc. was quoted by
Bloomberg as saying that the Central Bank had "sent a message that
further loosening measures will be rolled out".
Actually,
the results from the Chinese economy and all of these steps that their
Central Bank is taking are quite expected from a free market economy
which the Chinese government has been moved towards in the last decade.
The US and the world economies have demanded it and now we should
expect natural ups and downs...we cannot have a everything.
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