China’s Weakening Economy

China’s Weakening Economy

by Samuel Sutlive

May 25, 2012

China’s real estate and growth in infrastructure is slowing down compared to the fiscal year of 2011, according to the New York Times article, After Barreling Ahead in Recession, China Finally Slows.

China’s real estate prices are falling for more than half of China’s top 70 urban markets, according to the NYT May 25, 2012 article, After Barreling Ahead in Recession, China Finally Slows.

In late 2008 and early 2009 there was a high demand for apartments as poor laborers were coming to inland cities in large numbers, according to After Barreling Ahead in Recession, China Finally Slows.

Real Estate developers will have to pay more money on the interest rate for their loans since people are buying fewer apartments, according to Standard and Poor’s Ratings Services and Moody’s rating services.

HSBC, Hongkong and Shanghai Banking Corporation Limited, and the financial information provider Markit did a survey that shows that the manufacturing in China has been weakening from an index of 49.3 in April to 48.7 in May, according to After Barreling Ahead in Recession, China Finally Slows and the NYT Global Business with Reuters, Chinese Manufacturing Activity Slows Further, Survey shows.

Even though China’s economy was 8.1 percent larger in the first quarter of this year compared to 2011, almost all of the growth occurred in 2011, according to a Chinese Economist, Diana Choyleva in the Hong Kong office of Lombard Street Research.

In 2008 and 2009 there was a lot of construction going on, including new subway lines in Xian China. Now people are not seeing that much construction in Xian, according to After Barreling Ahead in Recession, China Finally Slows.

“With the country having finished building much of its infrastructure, it is having a harder time finding further projects that can pass cost-benefit analyses,” According to After Barreling Ahead in Recession, China Finally Slows.