China’s Slowdown Extends to Third Quarter Delaying Recovery
Created: 2012-09-13 09:50 EST
China’s economy is expected to slow down further this quarter… going below 8 percent.
Reuters polled 20 economists who believe the median forecast is 7.4 percent growth in the July to September period compared to the previous year.
The survey also predicted a growth of 7.7 percent for 2012, lower than a July poll forecast of 8 percent. Earlier polls in July showed a quicker and stronger upturn with 7.9 percent growth in the third quarter and 8.2 percent in the fourth.
The slowdown reflects a lack of urgent policy action for the past two months to bring down the cost of credit.
The upcoming leadership transition in the Chinese Communist Party slated for next month is seen as one of the reasons for policymakers’ inaction towards monetary easing.