All eyes on China's slowing economic growth
Fri, 13 Jul 2012 9:13a.m.
China will release its latest GDP figures later today and they are expected to show a slowing economy.
Trade growth has slowed in the region much more than anticipated.
But while that may have a flow on effect for exporters here, Greg Smith from wealth management firm Fat Prophets says there are still plenty of positives coming out of China.
“We are obviously seeing slowing… here’s a country who has seen double digit growth. The numbers are slowing but they’re not that bad.”
He says the world will be keenly watching the figure.
“All eyes will be on whether it goes below 8 percent a lot are expecting it will be. It’s also worth noting the government has a target of 7.5 percent so it’s quite comfortable with that level of growth.”
Mr Smith says it has the ability to maintain that growth.
“They’ve made a couple of interest rate cuts, the first time in 4 years in the past month and they’ve got about 3 trillion in foreign exchange reserves which also helps so they can really keep that growth going if they want to.”
Watch the video for the interview
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13/07/2012 10:10:45 a.m.
Perhaps if Chinese workers were paid more they could consume the goods they produce??? Wasnt that Henry Fords theory?. His workers were consumers too?w
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