Good day forex traders.
You have had your say and the results are as follows.
On the opinion if China has reached it’s economic peak :
56% voted No
44% voted Yes
Now this is a small difference in percentage and perhaps not without it’s reason. To many, China’s fast ascension to the world economic stage was a period of great opportunity. In the later part of the 20th century, China saw the need to revolutionize it’s economy. The government concentrated on
setting up the necessary infrastructure and sought to attract foreign investments, talents and expertise to set things in motion. Fast forward to the early 21th century, growth rate is slowing. The 2008 financial crisis and the current Euro Zone budget deficit crisis highlighted the increasing drag on the growth of the economy. If growth is indeed falling, the logical conclusion will be an eventual hail.
That is if policies remain status-quot.
The economy of China has grown and stretched itself a long way. Having said so, rural communities remain poor. Domestic issues and consumption took a back seat due to the priority of growth and ascension in the global economic arena.
Fortunately, this developing crack is apparently recognized by the government of China and steps are taken to rectify it. The Chinese government recognizes the fact that an economy reliant on international consumption leaves the country extremely vulnerable to the events of other countries economies.
Christine Lagarde of the IMF mentioned that China needs to be less reliant on exports and investment back in March.
China has an important task ahead. In a time whereby economic challenges are aplenty, it needs to quickly focus on it’s internal economic machinery. The splendid growth of the early years has come and gone by. In a time where countries struggle with their domestic economies, China is well posed to reap the economic strength it has gathered and expand growth domestically. If China takes the right step, the peak perhaps has yet to come.
Thank you readers for your time and why not head out to vote for the new Have Your Say ! poll?
Do you think a new financial crisis has hit us ?
The EUR/USD has fallen a fair bit. Worldwide, equities retreat from their top. Do you think a new financial crisis has hit us?
Have your say at the home page!