5 reasons to worry about china's economy
DESCRIPTION
New data released by the Chinese government suggests that its real estate bubble may have popped and its economy is feeling the effects.TRANSCRIPT
Reasons to Worry5about China’sECONOMY
Since the financial crisis, China hasserved as the engine of the global economy.
While the United States & Europeremain mired in economic malaise…
…China’s miraculous ascent has continued.
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
-4%-2%0%2%4%6%8%
10%12%14%16%
GDP Growth Rates: China vs. United States
China United States
Source: World Bank
But is this coming to an end?
That’s what it looks like…
1Real estate sales in China are headed lower.
2013 2014-10%0%
10%20%30%40%50%60%70%80%90% 77.60%
-3.70%
Year-over-Year Change in Real Estate Sales: 2013 vs. 2014
2Retail sales are growing at the slowest pace since feb. 2011.
Jan - Feb
2013
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan - Feb
2014
10.5%
11.0%
11.5%
12.0%
12.5%
13.0%
13.5%
14.0%
Year-over-Year Change in Retail Sales
3Industrial output is increasing at the weakest pace since 2009.
Jan - Feb 2013
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan - Feb 2014
8.0%
8.5%
9.0%
9.5%
10.0%
10.5%
11.0%
Year-over-Year Change in Industrial Output
4Fixed-income investments have eased to the lowest rate since 2002.
Jan - Feb 2013
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan - Feb 2014
17%
18%
19%
20%
21%
22%
Year-over-Year Change in Fixed-Income Investments
5Chinese stocks are nearing 5-year lows.
2009 2010 2011 2012 2013 20141,500
1,700
1,900
2,100
2,300
2,500
2,700
2,900
3,100
3,300
3,500
Shanghai Composite Index
Suffice it to say…
This doesn’t look promising.
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