The economic crisis won't outburst in China?

The economic crisis won't outburst in China?
Nov 11, 2008 01:59
KEVIN0518 Points: Join Date: Mar 13, 2007 Status: offline	Stephen S. Roach, the chairman of Morgan Stanley Asia, said that the global financial crisis would change global economic cycle and the global economic slowdown would be inevitable in future years. And China has been affected by the global financial crisis and the growth of Chinese economy will slow down. However, such an economic crisis in US won't happen in China. Roach estimates that the global economic growth next year will slow down and this situation won't change until 2010. The global economic growth in next few years will be less than 3.5 percent, worsely, lower than 2 percent. So Chinese economy growth will be down from 10 percent to 7 percent. "Although the growth will slow down, China shouldn't stop financial reform. It should learn some lessons from the financial crisis in US." Roach also thinks that the outlook of Chinese real estate is bright in long term view.

Nov 11, 2008 01:59

KEVIN0518
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Join Date: Mar 13, 2007
Status: offline

Stephen S. Roach, the chairman of Morgan Stanley Asia, said that the global financial crisis would change global economic cycle and the global economic slowdown would be inevitable in future years. And China has been affected by the global financial crisis and the growth of Chinese economy will slow down. However, such an economic crisis in US won't happen in China.

Roach estimates that the global economic growth next year will slow down and this situation won't change until 2010. The global economic growth in next few years will be less than 3.5 percent, worsely, lower than 2 percent. So Chinese economy growth will be down from 10 percent to 7 percent.

"Although the growth will slow down, China shouldn't stop financial reform. It should learn some lessons from the financial crisis in US."

Roach also thinks that the outlook of Chinese real estate is bright in long term view.

Nov 11, 2008 21:06

YINDUFFY
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Join Date: Aug 8, 2007
Status: Offline

Of course the financial crisis would not be felt the same in China as in the U.S. Few people in China have mortgages on their homes and few borrow money to buy cars or meet expenses.
However the financial crisis has resulted in a slowdown in our purchasing of consumer goods and that has impacted China's manufacturing centers. Southern China is being watched to see what will happen if or when thousands of low wage workers are dismissed and thrown out of their dormitories.

Nov 12, 2008 03:44	#2
KEVIN0518 Points: Join Date: Mar 13, 2007 Status: Offline	The financial crisis might not happen but Chinese economy has been affected, especially the exports. My friend told me that many factories in Guangdong have closed due to the global financial crisis. Too bad.

Nov 12, 2008 20:49	#3
JIMMYB Points: Join Date: Feb 7, 2007 Status: Offline	I read that many multi-nationals in China have started to reduce their staffs or lower their salaries. If you go to the talent market, you will understand how bad the employment situation is.

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