Here, I, Carl Koenemann, discuss the current troublesome state of the Chinese Economy, and go into why this is the case.

1. China Mired in
Economic Downturn
By Carl Koenemann

2. • Recent economic indicators coming out of the
second largest Economy on the globe have
demonstrated that the nation’s economic growth
has stagnated. This economic draught can be
linked to China’s steep decline in industrial
production growth, and a troubling downturn in
the real estate market.

3. • The economic growth is just 6.9% for the last
year, which is the lowest rate of growth for the
Economy since the recession in 2009. Major
financial institutions such as Barclays and RBS
expect the Chinese economy to come short of
its targeted growth by as much as .3 % point for
this year.

4. • This deceleration in the Chinese economy is
occurring at an unfortunate time as the rest of
the world’s economy is also stumbling. The US
recovery has not been nearly as robust as
expected, and the European economy is mired
in economic turmoil.

5. • The world is desperately searching for growth
somewhere, and China is no longer capable of
being the sole provider. Many experts are
predicting that the Chinese authorities will have
to make the decision whether or not to take
stimulus measures to promote growth or try to
simply survive the downturn.

6. • Small and large Chinese owners are
complaining that the current economic
conditions are the worst they have seen in
decades. Particularly,Sun Suqjong of Beijing
talks about how his workers sit in his shop with
nothing to do as his customers have dwindled
recently, and holds uncertain expectation on the
future of his country’s economy.

7. • he economic data from August only
corroborates Suqjong and other business
owners’ worrisome observations. The real estate
drought that has plagued China in the last few
quarters has begun to spread to other sectors of
the economy.

8. • Housing sales and construction decreased
almost 11% in the month of August alone.
Additionally, industrial activity has fallen as the
demand for Chinese-made goods from the
international community has slowed down
recently.

9. • The world’s eyes currently rest on Chinese
leadership hoping they make sound enough
decisions to weather the turbulence and to
return the nation’s to it’s position as the world’s
fastest growing economy.

10. • We can’t expect China’s Gross Domestic
Product to grow at an incredible 10% per year,
but we can hope that they continue to
experience robust economic growth going
forward. Such growth may be necessary to help
maintain the world’s slow recovery from the
financial crisis of a few years ago.