| China's economy to grow slow in 2008 | |
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| Jan 3, 2008 03:54 |   |
 | If you can have only one word to sum up the scenario of China's economy, which one will you choose to describe the situation? My word will be inflation. The widespreading inflation in Chinese goods is the most distinguished feature of China's economy. The price of daily necessities hikes. The housing price is ridiculously high. The stock market experienced an unprecedented bullish market. China's economy is likely to expand at a slower rate in 2008 than it did in 2007, or by less than 11 percent, as the government tries to avoid overheating, according to Yao Jingyuan, the chief economist of the National Bureau of Statistics (NBS). It is high time for Chinese economy to cool down. The mounting inflation can be comprehened every corner of China. 2008, China's economy need to slow down? What's your opinion? |
| Jan 9, 2008 02:36 | #1 |
| IMO, Chinese economy needs to slow down its pace confronted with inflation, soaring housing prices and abnormal stock market. According to ICBC's estimation, the central government might increase its interest rates twice in 2008 to cool down its economy. I just wonder if it works. Don't forget that the Olympic Games will be held this year. WIth this 'catalyst', it is really hard for the authorities to realize their plans. |
| Jan 13, 2008 05:34 | #2 |
| The issue is that rsufficient esources of all types are not available in the quantities that are needed, so supply and demand interaction means prices will rise. That price rise reflects an inefficiency caused by trying to invest beyond the nation's capability. The housing price is inevitable. There is such a backlog of demand that just needed money and confidence to make it a reality. Hoouse prices are NOT unaffordable in a market sense, because people are prepared to pay that much. If the goverment introduced a system to restrain prices, property owners would find people offering over the set price. Or if really strict laws were put in place, sellers would decide to wait so they could get the full value. That you and other young people cannot afford to buy a house is a totally different issue. We have the same issue in most countries. probably just as much now as when we were poorer. Some governments in Australia have offered a toatl of $14,000 to first home buyers to help them. STUPID! As people could afford more while the number of house for sale stayed the same, house prices immediately went up by $14,000. Welcome to the market economy! |
| Jan 16, 2008 19:47 | #3 |
| "probably just as much now as when we were poorer. Some governments in Australia have offered a toatl of $14,000 to first home buyers to help them. STUPID! As people could afford more while the number of house for sale stayed the same, house prices immediately went up by $14,000." Paul, your words sound reasonable. With the help of the government, people can afford to buy houses. However, there are too many people who want to buy houses. The supply can not meet the demand. So house prices is increasing. If we consider this problem at the stance of the government, we can understand that the government just hope more and more people to have their own houses. That is the reason why he offer some money to them. |
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