China's economy grows,,

[Diyeeshaha_Tolka]

China's economy grows,, while the rest of the world is suffering,,indhoyartan caadi ma ahan

China's economy grew 7.9 per cent in the second quarter of 2009, the government has said, putting it on track to hit the stated goal of eight per cent growth for the year.

The year-on-year growth was well up from the 6.1 per cent registered in the first quarter, the National Bureau of Statistics said on Thursday.

The second quarter gross domestic product growth, built on the back of a $586bn government stimulus package, makes China the best-performing major economy in the world at the moment.

"It's very encouraging, the eight per cent growth target is in sight," Daniel Soh, an economist at Singapore-based consultancy Forecast, told the Reuters news agency.

Market reaction
China's latest economic data helped lift Asia-Pacific stock markets, already buoyed by upbeat US company earnings released on Wednesday.

By the end of Thursday's trade:

Tokyo's Nikkei 225 was up 0.8 per cent

Hong Kong's Hang Seng gained 0.6 per cent

Seoul's Kospi added 0.8 per cent

Sydney's S&P ASX 200 was up 1.8 per cent

Singapore's Straits Times was up 0.5 per pent

"It's by now clear that the fiscal stimulus package has offset the contraction in export activity."

Other government data for June back up the assertion that domestic investment and consumption had made up for falling exports to put Beijing within reach of the eight per cent annual growth deemed necessary to keep unemployment and social unrest at bay.

Investment in fixed assets in urban areas grew 33.6 per cent in the first half, up from 32.9 per cent in the first five months.

In the same period industrial production growth quickened to 10.7 per cent, up from 8.9 per cent in the 12 months to May beating analysts' forecast of 9.4 per cent growth.

Retail sales rose 15 per cent in June from a year earlier after May's 15.2 per cent increase, but consumer prices in June fell 1.7 per cent from a year earlier, easing fears that the massive government stimulus could trigger high inflation.

'Volatile factors'


The downturn has thrown thousands of factory workers out of their jobs [GALLO/GETTY]
China does not yet publish quarter-on-quarter GDP data, which give a better sense of current momentum than year-on-year growth rates, but estimates by banks paint an even rosier picture for the world's third-largest economy behind Japan and the US.

Goldman Sachs, for instance, which had forecast a 7.8 per cent second-quarter growth, said that translated into 16 per cent growth compared with the first quarter when expressed as a seasonally adjusted annualised rate.

The government has warned, however, that a long term recovery is not yet secure.

"The base for recovery is still weak," the statistic bureau said as it published the latest data.

"Growth momentum is unstable. The recovery pattern is unbalanced and thus there are still uncertain and volatile factors in the recovery process."

Source: Agencies

[AbdiWahab252]

India's economy grows too:

http://www.business-standard.com/india/ ... 8/67955/on

CMIE revises down India's growth projection to 5.8%
Press Trust of India / New Delhi July 16, 2009, 18:31 IST

Economic think-tank Centre for Monitoring Indian Economy (CMIE) today revised down India's growth forecast to 5.8 per cent in the current fiscal on account of lower agricultural output and slower industrial recovery due to the poor progress of monsoon.


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"The impact of the lower agricultural output and the slower industrial recovery will be felt. We now expect the GDP to grow by 5.8 per cent in 2009-10 compared to 6.6 per cent expected earlier," CMIE said in a release.

It said that while the Union Budget for 2009-10 is expansionary and conducive to growth, the failure of the monsoon and its significantly adverse impact on agriculture and industry will shave off 0.8 per centage points from the GDP growth rate.

"The poor progress of the south-west monsoon till the first week of July 2009 is expected to adversely affect the prospects of growth in agriculture, in industry and in the gross domestic product of the country as a whole," CMIE said.

It said that because of the impact of the failed monsoon, production of sugar and edible oils will fall by 3.6 per cent and 2.5 per cent respectively.

Further, agro-based industries are expected to witness some stress.

Indian economy grew at a slow pace of 6.7 per cent in 2008-09 against a growth rate of 9 per cent in the preceding four years.

CMIE said the ongoing industrial recovery will also be impacted and projected the industrial production growth at 4.8 per cent in the current fiscal against 5.1 per cent projected earlier.

"Nevertheless, this growth rate is significantly higher than the 2.4 per cent growth registered in 2008-09," it said.

Showing signs of economic recovery, industry grew 2.7 per cent in May though the growth is much lower than the 4.4 per cent recorded in the corresponding month last year.

Industrial growth during April, the first month of the current fiscal, was 1.2 per cent.

CMIE further said that potent demand and capacity expansions in non-agro-based industries such as cement, aluminium, commercial vehicles, cars and two wheelers are expected to aid industrial growth.

"These expansions and their backward and forward linkages are expected to generate employment, increase income and improve demand," CMIE said.

[ModerateMuslim]

but i thought economic growth came only via democracy, i.e. the best thing since slice bread?

[AbdiWahab252]

but i thought economic growth came only via democracy, i.e. the best thing since slice bread?

India is the world's largest democracy

[ModerateMuslim]

but i thought economic growth came only via democracy, i.e. the best thing since slice bread?

India is the world's largest democracy

and overwhelmingly majority of the cow-worshippers are dirt-poor, too; unlike the chinese.

[paidmonk]

and overwhelmingly majority of the cow-worshippers are dirt-poor, too; unlike the chinese.

Because the Chinese believe in uncompromisable communist values. Their Indian counterparts are superstitious and backwards, always will be.

Communism is the next stage of mankind's social, intellectual, and political progress. It is the last system for the human race, the final frontier, the system that will define the next stage of our evolution even if its not a physical one.

[Grant]

Paid,

That is just BS.

The Indian and Chinese economies are still doing well because of all the outsourcing from the West, i.e. they have some of the cheapest labor markets, and therefore some of the poorest citizens, in the world.

The interesting thing to me about the Chinese economy is that it is market-based with essentially Capitalist rules. As the economy grows, wages will rise, and China's competitive advantage will disappear even as it's citizens become able to purchase and consume the country's produce.

Besides the outsourcing, one other factor that helped bring on the current downturn was the refusal of many countries to recognize intellectual property rights. This is somethng that could still get corrected as trade agreements are renegotiated, something I understand the Obama administration intends to do.

[CoolPoisons]

I wish i was Japanese or South Korean

[paidmonk]

Paid,

That is just BS.

The Indian and Chinese economies are still doing well because of all the outsourcing from the West, i.e. they have some of the cheapest labor markets, and therefore some of the poorest citizens, in the world.

The interesting thing to me about the Chinese economy is that it is market-based with essentially Capitalist rules. As the economy grows, wages will rise, and China's competitive advantage will disappear even as it's citizens become able to purchase and consume the country's produce.

Besides the outsourcing, one other factor that helped bring on the current downturn was the refusal of many countries to recognize intellectual property rights. This is somethng that could still get corrected as trade agreements are renegotiated, something I understand the Obama administration intends to do.

China's wealth is far better distributed than India's, that's my only point. I was replying to a user who made a comparison about why China is beating a capitalist India at its own game. I was pointing out that China uses its people to do its bidding for the future whereas India relies heavily on the upper 1% to do the job as any screwed-up aristocratic society, thus helping that 1% to grow whereas China is simultaneously pulling its entire population out of the shadows and into modern life. India has no concern for helping create a larger middle class so long as the dollars are rolling in.

[ModerateMuslim]

ya senile grant,

whatever the system is in china, its certainly not based upon the metaphysical principles of democracy - far from it.


sure, the current economical advantages which china enjoys might disappear. but that's a good thing for china because this would mean that it's reached the next stage in its goal of becoming an economical powerhouse unlike any other in history.

china's current economical goal is to transform its economy from a manufacturing/agricultural driven one to a consumer/service driven economy, one that doesn't rely on western consumers entirely; and after that, an knowledge based economy.

and i must say, china is well on is way to achieving its economical goals. its has build/building the infrastructures and institutions that a modern economy requires.

compare the model of economic development that china has adopted to that of india - one (india) is trying a whole new and unproven model - going from agricultural economy to knowledge based economy overnight, skipping the manufacturing stage altogether, without the needed institutions and infrastructure such economy requires - while the other (china) is using a greatly successful development model - the same model used by britain, germany, america, japan, etc, basically the one used by every developed economy of today. it would be stupid and delusional of india to think that it can skip the manufacturing stage and overnight become an advanced knowledge based economy. it doesn't have the people, institutions, nor the infrastructure for that.

ironically, by the way things are going - china will also become a western style democratic country before india. lol. to sustain this rapid development - china will be forced to curb corruption, more free market and less regulations while still keeping its current economic egalitarianism, more decision making has to be given to the corporations and individuals, etc... basically, a country's economic fortunes and (western style) freedoms for its citizens go hand in hand in the long run, i.e. britian, america, japan, etc. these mentioned countries and their likes became economically developed countries before they became democracies.

[Grant]

[quote="Somali-Star"]ya senile grant,

So look what you go on to write......

I think you're right, though, in spite of misconstrueing what I was saying.

[surrender]

Qatar - 13.4% GDP Growth
It seems that being one of the richest countries in the world is not enough for Qatar. While being a poor country in the past, Qatar discovered huge reserves of oil and gas in the 1940-s,that completely transformed its economy.

Qatar offers most of its services to its citizens for free and has no income tax. The amount of money they get from selling oil is more than enough for their small yet thriving economy.

[Basra-]

I blame adoon obama.Adoon were not meant to lead or generate money.I think US governement should sabotage/do something to disable the growth of china's economy. IF china fails we gain. US government need to have that mentality! I hope we dont end up being like third world countries!

[Grant]

http://www.washingtonpost.com/wp-dyn/co ... 00703.html

The Adoon President and Americans in general are stupid. They sold the Chinese Government $1T in US debt, and look at the consequences. I am guessing, in the end, they may have to come through on the intellectual property rights, to collect.

[ModerateMuslim]

http://www.washingtonpost.com/wp-dyn/content/article/2009/03/13/AR2009031300703.html

The Adoon President and Americans in general are stupid. They sold the Chinese Government $1T in US debt, and look at the consequences. I am guessing, in the end, they may have to come through on the intellectual property rights, to collect.

chinese earn it and americans spend it.