Saturday, November 29, 2008
China Fears Unrest Amid Slowdown
The increase in economic slowdowns in China will lead to considerable unemployment, which could stimulate social unrest. The unemployment can be attributed to bankruptcies and production cuts. The forecast of growth for the fourth quarter is expected to be 8%, down from 9% the quarter before. Even with that, China is still growing faster than any other leading economy. To help fix these economic problems, the Chinese central bank cut interest rates fairly aggressively.
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2 comments:
China's population is definitely a negative, and if whenever their downfall is it will because of their population. But as for now China will be fine. With that 529 billion stimulus package, their problem continues to be political not economic stability.
There's been protests in the Shenzeng SEZ by the workers recently becuase of unpaid wages from factories that have closed down.
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