Home / Knowledge / News / Economic growth continues to go down the slide
Economic growth continues to go down the slide
30
Aug '08
The present downtrend in the economic growth of China has been largely caused because of a drop in export growth. However, when faced with a weakening international demand, the plunge in growth becomes all the more evident.

Besides, increased investment cost of enterprises, tightening of monetary policy, rising prices of energy and raw material, hike in wages and a host of other decisive factors have negatively impacted the economic growth of China.

Moreover, experts believe that a further slowdown due to declining external demand and rise in domestic production costs would surely inhibit investment growth. Already, the current economic outlook of major export markets like US and EU are weakening, so measures like bringing down the rate of RMB appreciation and increasing the rate of export tax rebate for certain products would only be of limited help in stimulating China's economic growth. As a consequence, it would be increasingly difficult for the country to maintain a growth rate of 11.9 percent achieved in 2007.

Starting from 2000, the economic growth kept on ascending for eight long years and maintained an above 10 percent growth for five consecutive years in the period 2003-07, finally touching a record high of 11.9 percent in 2007.

However, after entering 2008, the growth rate went down the ladder as GDP stood at 10.6 percent in the first quarter marking a drop of 1.1 percentage points. Growth rate in the first half registered at 10.4 percent, down 1.8 percentage points than in the corresponding period last year.

Consumer Price Index (CPI) in the first half rose 7.9 percent, which is much higher than 3.2 percent in the first half of 2007; producer price index (PPI) rose 7.6 percent, also higher than 7.4 percent in January-May. Of which, June PPI rose 8.8 percent, setting a three-year high in growth rates for six consecutive months.

On the other hand, while import growth rate has been on a continuous rise, net export surplus is declining steadily. Export growth in the first half registered 21.9 percent, down by 5.7 percent. In the month of June alone, export growth fell to 17.6 percent, a year on year decline of nearly 10 percentage points. In contrast to this, imports for the month grew 30.6 percent, rising by 12.4 percent over the same period last year while the over all trade surplus reduced to US $13.2 billion from the same time last year.

Although, net exports increased in the first six months of 2008, it was on the whole, lower than the level of the same period in 2007. By the end of June 2008, the balance of accumulated foreign exchange reserves reached $1.8088 trillion, but new inflow of foreign exchange reserves were below the level achieved a year earlier.

From the perspective of trade modes, export growth rate of general trade fell sharply in the first half of 2008, while import growth rate of general trade rose rapidly and trade surplus of net exports of general trade declined dramatically. Even growth of processing trade fell significantly.


Must ReadView All

Courtesy: Sympatex Technologies

Textiles | On 23rd Feb 2018

Sympatex, Ricosta jointly move towards sustainability

Sympatex Technologies is moving towards sustainability with its...

Courtesy: Business wire

Information Technology | On 23rd Feb 2018

CLO Virtual Fashion launches CLO 4.0 & new website

CLO Virtual Fashion, a leading developer of cutting-edge 3D garment...

Courtesy: Delta Galil

Apparel/Garments | On 23rd Feb 2018

Delta Galil 2017 sales up 16% to $1,368.1 million

Delta Galil sales for full year 2017 increased 16 per cent to...

Interviews View All

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

February 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search