Chinese economy suffers anticipated growth slowdown

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China’s economic growth dropped to its slowest rate for more than two years in December 2011, it has been revealed.

China has the world’s second largest economy, and has enjoyed some of the fastest growth of any country in the world over the past few years.

But its rapid expansion was shown to have slowed last month, as China’s gross domestic product (GDP) grew by 8.9% in the three months to December.

This is down from the 9.1% GDP growth in the previous quarter, and brought growth statistics for the year as a whole down to 9.2%.

This is down from 10.3% in 2010, with economic analysts expecting China’s growth to slow down even more over the next 12 months.

While the boom in growth over recent years was welcomed by China, there is now a danger of asset bubbles developing – caused by stimulus measures implemented by the Chinese government.

As a result, China is now looking at ways of gently curbing the rapid growth, to create a more sustainable economy.

These measures include a curb on lending, to try and prevent overheating in the property and investment markets, as well as a tightening of the money supply.

The measures have been welcomed by many analysts, who say that China’s extreme economic growth is very dangerous for the global economy. If a bubble was created and it burst, the implications would be felt around the world.

China’s economic growth slowdown has also been largely attributed to a fall in exports, as a result of less demand in the US and Europe.

Transfer Money to China

If you are looking to invest in China, think carefully about how you will be transferring money to China. Foreign currency exchange rates quoted by banks are almost always worse than the exchange rates available through specialist currency dealers.

So if you are sending money to China– which you will inevitably have to do if you are looking to make a property investment, be sure to compare the market before you buy your overseas currency.

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