Less performing Chinese economy

Less performing Chinese economy

China’s economy is contracting because of the world wide debt crisis but the government and the national bank are trying to withstand further decline

China’s economic data is turning downwards. The current-account (trade surplus other items) fell in the third quarter of 2011 43.5 % (against the same period of 2010) or to USD 57.8 billion and now the Purchasing Manager Index (PMI) fell to 49 points and this is a decrease for the first time since February 2009. In October the PMI still recorded 50.4 points. On Wednesday last China’s national bank decreased – also for the first time since three years – the minimum level of reserve holdings for business banks from 21.5 to 21 %. It is expected that the economic factors will remain on decline during coming months because of the weakening export volume due to the flattening of worldwide trade growth rates.

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