* Falling GDP
The ADB cut its GDP growth estimate for China by nearly 1 percentage point to 7.7 percent from the previous 8.5 percent, warning that risks to the world's second-largest economy were likely to intensify in the short term, given bleak global demand and the uncertain outlook for its largest trading partners. "The global slump in demand, especially from Europe, will remain a serious drag on growth in the near term," ADB Chief Economist Changyong Rhee said in a news release as the Manila-based bank released an update of its regional outlook. "The government has the means to cushion the economy from global turmoil, however. Its strong fiscal position, receding inflation and expansionary policy measures should ensure a soft economic landing, but it needs to expedite its effort to diversify the source of growth and strengthen structural reforms for inclusive growth." Highlighting the extent of China's slowdown, an official survey also released on Wednesday indicated its normally robust services sector lost considerable momentum in September, with a key activity index falling to near two-year lows, as slow growth in manufacturing began to feed through to the rest of the economy. The eurozone's unresolved sovereign debt crisis and the United States' looming fiscal cliff were the biggest risks to the regional growth outlook, with Asia's most open economies particularly vulnerable to spillover effects, the ADB warned. http://www.chinadaily.com.cn/bizchina/2012-10/04/content_15796419.htm * Industrial Growth Picking up
The industry sector performance has shown signs of stabilization and we can see an even clearer growing trend from the month-on-month figures in the third quarter," Zhu Hongren, the spokesman and chief engineer of the Ministry, told a news conference. "Therefore, we expect that industrial output growth in the fourth quarter would be faster than that in Q3, which will help the country to achieve its annual economic growth target of 7.5 percent," he added. "The stabilization trend of China's industrial sector is not yet solid and we are still facing many challenges and difficulties to realize stable growth," the Ministry's earlier statement said. China's industrial output in September grew 9.2 percent, picking up from a rise of 8.9 percent in August, but despite signs of a gentle improvement in the factory sector, annual industrial output growth of 10 percent in the first nine months of 2012 is still below the Ministry's 11 percent target. China's overall economic growth accelerated to 2.2 percent quarter-on-quarter in Q3 from an upwardly revised 2.0 percent rate in Q2, data showed last week, reinforcing views of analysts that a recovery is beginning to take hold even while annual growth heads for its slowest year since 1999. http://www.reuters.com/article/2012/10/25/us-china-economy-industry-growth-idUSBRE89O05F20121025 * Industrial Exports Picking up
China's exports grew 9.9 percent in September from a year earlier, roughly twice the rate expected by the market. Imports returned to the path of expansion, growing by 2.4 percent. Together they raised hopes that recovery in the world's No.2 economy may start to take hold. China likely hit the bottom of a seven-quarter long economic downturn between July and September, but the slowest three months of growth since the depths of the financial crisis and a cloudy housing market outlook make recovery prospects tepid. A debt crisis in China's biggest foreign market, the European Union, has dented demand for goods coming off assembly lines in the factory sector and ultimately weighed on the domestic economy. Exports were worth 31 percent of GDP in 2011, according to the World Bank, and supported an estimated 200 million Chinese jobs. Yao added that the Commerce Ministry would continue to implement measures to stabilize trade growth and further expand imports of advanced technology, equipment and key components to improve the trade balance. To cushion...
Please join StudyMode to read the full document