Bad News For China

How serious is the current crisis afflicting the international financial markets? Yesterday a new country is officially in recession, and that country was nothing more nor less than Italy. The Federal Reserve, in an unprecedented, is evaluating the possibility of issuing debt as a way to have a new tool to assist the markets in a time of extreme tension over potential risk of new episodes of crisis and to the depletion of the benchmark interest rate as monetary policy tool when it is getting closer to being neutral. Also yesterday it was learned that China had during the month of November a fall in exports of 2.2% year on year, this being the first fall that registraa since 2001. All these facts show largely depth that is reaching the international financial crisis, even though they are not enough to have a clear idea of whether or not it can be even worse. The drop in Chinese exports in the month November, but still does not mark a trend, it is a warning sign and makes clear that China's economy largely feel the effects of the crisis, being forgotten the famous theory of decoupling.

While this has caused surprise drop in foreign sales of the eastern economy, it should not have taken without warning and that Chinese exports are largely dependent on demand from both the U.S. economy, as European countries and Japan All economies are now in recession. The impact of the crisis on the Chinese economy makes us forget the GDP growth rates in double digits and as experts predict Chinese GDP growth below 7%. .

Author: admin