Tag Archives | China

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China allocates $58bn to stimulate petchem exports

China plans to increase petchem production as a way of stimulating its economy. According to the China Daily, the government intends to allocate 400bn yuan ($58bn) from its fiscal stimulus to accelerate the implementation of petchem expansion plans. Bloomberg adds that the givernment could approve plans next week to increase “tax rebates for the exports […]

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Germany’s industrial orders collapse 29%

There is little justice in today’s recession. Countries that saved hard, and avoided reckless lending, are seeing their economies collapse as fast as those that spent as if there was no tomorrow. Thus Germany is now following the path already trodden by other export-oriented economies, such as Japan and most of the emerging economies. As […]

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S Korean exports drop 33% in January

The scale of the crisis in Asian economies becomes clearer, month by month. Exports account for nearly half of S Korea’s GDP. In January, these dropped 33%. Of course, January is always a slow month, due to the Lunar New Year, but these figures followed earlier falls of 19% in November and 18% in December. […]

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China plans “extraordinary measures”

China faces a difficult outlook, after the collapse of its main export markets in the West. Interviewed by the Financial Times today, China’s premier, Wen Jiabao, sets out a pragmatic list of “forceful” actions that are now underway. Most are Keynesian measures, aimed at putting money in the pockets of those who are most likely […]

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IMF says “demand has collapsed”, sees “deflation risk”

A year ago, the International Monetary Fund rightly warned that the world was facing a “serious economic slowdown”. This week, it has updated its forecasts, and now “expects the global economy to come to a virtual standstill in 2009″. This will be “the lowest rate of global GDP growth since World War II”. As the […]

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Asian economies hit: US home starts slump

Asia is hard-hit by the downturn in the Western economy. Today, China said its Q4 GDP had grown just 6.8%, the slowest level since 2001. This led premier Wen Jiabao to say the outlook for jobs was “very grim”. It also increased speculation that China will devalue the renmimbi, which would increase trade tensions within […]

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Shanghai region slows

The Yangtze River Delta region (which includes Shanghai, Jiangsu and Zhejiang) accounted for 22% of China’s GDP in 2007. It is focused on exports to the USA and EU, and is a major centre for chemicals production. But now, like the Pearl River Delta, its economy is slowing fast. According to the China Daily, an […]

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IEA revises down oil demand

The International Energy Agency (IEA) has cut its estimate of expected global GDP growth in 2009 to just 1.2%. It therefore expects the world to record its first back-to-back annual decline in oil demand since 1982/3. It says oil production last month was unchanged at 86.2mbd, despite OPEC cutbacks and the first fall in Russian […]

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China’s exports fall, imports collapse

China has just reported its first fall in exports for 7 years. These were still growing at 19.1% in October, but fell 2.2% in November. The suddenness of the downturn is also shown in the import figures, which were down 17.9% versus 2007. The numbers confirm the blog’s long-expressed fear that China, and the Asian […]

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China focuses on domestic growth

In September, the blog wondered whether “China’s interest in remaining the manufacturing capital of the world may be starting to wane”. Yesterday, Lou Jiwei, the chairman of China’s sovereign wealth fund (China Investment Corporation) confirmed the new focus on domestic growth. He suggested that “if China can do a good job domestically, that is the […]

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