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EU recession to hit economy in 2009, foresee experts
04 Sep '08
1 min read
Since the beginning of this year business community has been struggling to cope with effects of weakening US economy.
However, analysts have predicted that a similar recession may hit the European nations in 2009.
It has been estimated that next year, the growth-rate of EU GDP will fall 1.1 percent, whereas, Chinese RMB will appreciate 10 percent against Euro.
Europe is the top export market for Chinese products.
However, considering the above factors, Chinese exports to the EU will possibly go down from this year's 26 percent to almost nil.
Export oriented industries, including textile and clothing, will suffer the most. Calculations show that if EU GDP growth drops one percent, Chinese textile industry income will shrink over 5 percent.
Experts say that Government must foresee this future and help enterprises to prepare and cope with these pressures.
They said that a few effective and good policies are all that is needed to assist industries in maintaining their positions in the global market.
However, analysts have predicted that a similar recession may hit the European nations in 2009.
It has been estimated that next year, the growth-rate of EU GDP will fall 1.1 percent, whereas, Chinese RMB will appreciate 10 percent against Euro.
Europe is the top export market for Chinese products.
However, considering the above factors, Chinese exports to the EU will possibly go down from this year's 26 percent to almost nil.
Export oriented industries, including textile and clothing, will suffer the most. Calculations show that if EU GDP growth drops one percent, Chinese textile industry income will shrink over 5 percent.
Experts say that Government must foresee this future and help enterprises to prepare and cope with these pressures.
They said that a few effective and good policies are all that is needed to assist industries in maintaining their positions in the global market.
Fibre2fashion News Desk - China
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