Im Christopher Cruise.
You are listening to As It Is. Im Mario Ritter.
Why the Chinese Economy Could Slow This Year
Chinas economic growth has slowed, settling at 7.7 percent last year. Some economists blame a lack of consumer spending for the decrease. Steve Ember has this report on Chinas economy.
Ma Jiantang is director of Chinas National Bureau of Statistics. He says it is no easy job to keep growth at over seven percent and inflation low at the same time. That is made more difficult by the size and nature of Chinas economy, the worlds second largest. Mr. Ma says this combination, of high growth and limited inflation, is unusual in the world.
Click to enlarge--A truck transporting a container leaves the port of Qingdao, in northeast China.Chinas economy had 10 percent growth rates in the years before the world financial crisis of 2008. That economic expansion resulted from big trade surpluses and foreign investment. Now, says Ma Jiantang, China is seeking to move away from that growth model. The country is working to balance exports with demand at home.
Recently released information shows that household spending in China remains lower than in most economies. Chinese government estimates put household spending at about 36 percent of all goods and services produced within the country. That is down from 49 percent in 1978. By comparison, Thailands household spending represents 56 percent of its economy.
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