Great fall of China needs cheques and balances

Description

In view of the tectonic shift in China''s economic policy, a pertinent question for global analysts is whether in these difficult times, would the Fed Reserve of the US be able to raise interest rates, as was anticipated earlier, from September 2015?. The global financial markets are in turmoil because of developments in China. The economic growth of China is slowing down since the last five years and is projected to grow at 6.3 per cent in 2016, from double-digit growth for nearly last three decades.The manufacturing sector in China is recording slower growth mainly due to a slowdown in exports because of a difficult global economy, mainly the US and Europe. In addition, within China there are pressures to increase wages and improve working conditions in factories, which implies that the era of cheap exports could be coming to an end. There are still more problems in China like resistance to reforms in state-owned enterprises and the banking sector, and fight against corruption. Read more at: https://www.tribuneindia.com/news/archive/comment/great-fall-of-china-needs-cheques-and-balances-125302

Publication Date

28-8-2015

Publication Title

The Tribune

Publisher

The Tribune Trust

Keywords

Economics, Economic growth, Economic policy, Interest rates, Financial markets, Global economy, Monetary policy, Financial system, Social security

Source Link URL

https://www.tribuneindia.com/news/archive/comment/great-fall-of-china-needs-cheques-and-balances-125302

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