China GDP

Many of you that have been clients for a while, may remember discussions about China slowing after the Olympics.

We discussed how the GDP would likely slow to 5% for China and this will seem like a harsh recession for this country. That scenario is playing out based on the latest data.

China's real GDP growth slowed to 6.8% for the 4th quarter. The continued contraction suggests that GDP growth will continue to fall. While most
countries and their stock markets would be jumping , this isn't the case in China. Most economists suggest that unless growth is over 8%, China cannot absorb the 20 million plus new workers that join their work force every year.