» China: Modest Recovery Continues – As Does Risk Decision Economics

China: Modest Recovery Continues – As Does Risk

Posted December 10, 2012 by rvillareal

  • November figures on fixed capital formation, retail sales, and trade indicate a stabilizing Chinese economy.
  • More specifically, dependence on domestic consumption, growth in investment spending, and expanding exports are current highlights.
  • While the data is constructive however, it is not enough to ease fears of a potential retrenchment if the external downward pressures intensify.
  • All said, the most likely outcome of the present trends is real GDP growth of 7.5%-to-8% in the final quarter of 2012, with a possible small jump in 2013 to the 8%-to-8.5% range.
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