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IMF: EU recession may hit China growth by half
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IMF: EU recession may hit China growth by half# Stock
i*e
1
IMF is forecasting 8.2 percent growth for China this year but says that
could fall by up to 4 percentage points if Europe’s crisis results in large
reductions in output.
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w*2
2
that scary??!! that is too much 4%...
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i*e
3
4% is disastrous for China, coz half of the new labor force will be jobless
. That is around 10 million people per year.
More importantly, 4% GDP growth means most companies cannot create earnings.
Think about Chinese company's profitability even with a 9-10% growth.
Finally, a 4% growth will definitely trigger a hand landing on all kinds of
assets price.
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