China back on track economically
Quarterly growth tops forecasts with rebounds in industrial output, retail sales
The economy of China was in a slump for more than two years, affecting the world economy. However - there are signs that the Asian giant is now back on track. Quarterly growth has topped all expectations. A rebound in industrial output, retail sales and the housing market has turned the tide.
In China, quarterly growth has topped all expectations. A rebound in industrial output, retail sales and the housing market has turned the tide.
These are all hopeful signs that the global economy is improving. U.S. data yesterday showed housing starts at a four-year high, European bond yields receded from crisis levels and Japan announced a $116 billion stimulus.
In order to sustain growth, China's incoming premier, Li Keqiang needs to address the dwindling effects of government support.
"China's recovery is in quite good shape," Zhu Haibin, chief China economist at JPMorgan Chase & Co. in Hong Kong, said in a telephone interview. "Domestic pro-growth policies are likely to wane in mid-2013," yet demand from abroad may pick up in the second half, he said.
The Shanghai Composite Index (SHCOMP), the nation's benchmark gauge, has advanced 18 percent from an almost four-year low on Dec. 3, including a 1.4 percent rise today.
In addition, the yuan has appreciated 0.23 percent against the dollar this year as of Thursday, the best start since 2009. The yuan touched 6.2124 per dollar on Jan. 14, the strongest level since the government unified the official and market exchange rates at the end of 1993. It was little changed today at 6.2153 as of 3:04 p.m. in Shanghai.
In light of this activity, Zhu said he's considering raising his forecast for 2013 GDP growth to 8.2 percent from 8 percent.
A separate report today showed China's new home prices rose in December in 54 of 70 cities the government tracks, the most in 20 months.
The Chinese economic news is not all good -- the economy expanded 7.8 percent for the full year, the least in 13 years, according to statistics bureau data, compared with the 7.7 percent median estimate in a Bloomberg survey of 32 economists. Growth may pick up to 8.1 percent this year, according to analysts polled by Bloomberg in December.
© 2013, Distributed by NEWS CONSORTIUM.
- - -
Pope Benedict XVI's Prayer Intentions for January 2013
General Intention: The Faith of Christians. That in this Year of Faith Christians may deepen their knowledge of the mystery of Christ and witness joyfully to the gift of faith in him.
Missionary Intention: Middle Eastern Christians. That the Christian communities of the Middle East, often discriminated against, may receive from the Holy Spirit the strength of fidelity and perseverance.
Keywords: China, yuan, economy, retail sales, industrial output
Rate This Article
Leave a Comment
More Business & Economics News
- Web developer: Earn $60,000 a year - without college degree or debt
- China, India, Brazil could dominate global investment by 2030
- Unemployment in U.S. comes roaring back - in a big way
- Criminally unfair? Why disgraced Enron CEO Skilling could see freedom sooner than you think
- Berkshire Hathaway Inc. hits first quarter record profit at 51 percent
- China and Japan now hold record amounts of Obama debt
- Does shift to mobile mean Facebook's salad days are done? Not at all
- U.S. annual growth rate slowest since 1929, start of Great Depression
- Prosperity gap between races in U.S. widened during recession
- Fr. Paul Schenck: Finding Living Faith on Catechetical Sunday
- The Movie Yellow: Incest as 'Normal' and Cassavates's Slides Into the World of Woes
- The Chicago School Teachers Strike Reveals the Need For School Choice
- The Sexual Barbarians and the Dissolution of Culture
- The Happy Priest Challenges Us to Ask: Who is Jesus to Me?
- Michael Coren on Canadian Public Schools: Teachers, leave those kids alone
- We Cannot Ignore Our Consciences: Cardinal Dolan On Religious Liberty
- In the Face of Danger, Successor of Peter Travels to Lebanon as a Messenger of Peace
- Reflections on the Dignity and Vocation of Women: Who or What?
Disclaimer: The columns, articles, advertisers claims and any other features provided on Catholic Online Business & Economics are provided for personal finance and investment information and are not to be construed as investment advice. Under no circumstances does the information in this content represent a recommendation to buy, sell or hold any security. The views and opinions expressed in an article or column are the author's own and not necessarily those of Catholic Online and there is no implied endorsement by Catholic Online of any advice or trading strategy.