By the middle of 2009, the slowdown in most big world economies seems far off. However, the market in China seems to be realizing recovery: the Chinese National Bureau of Statistics (NBS) announces economic data of China market growth in a press conference on July 17, 2009, showing that the first-half year's GDP rises by 7.1%, with 7.9% up for the second quarter, and 6.1% for the first quarter.
Most Chinese economists say that China market growth for the full year probably surpasses 8%, and the economy will expand at around 9 percent in the second half. At the same time, the International Monetary Fund raised its forecast of China's 2009 growth by one percentage point to 7.5%. The World Bank also adjusted its figure from 6.5% to 7.2%. J.P. Morgan thought that figure was still too low, saying that "Everything is happening very fast there. Market in China can still achieve 8% growth."
The recovery is driven by the domestic demand. It's the Chinese consumers, not the exporters that are powering the mighty economic engine. By lowering taxes and issuing subsidies as part of a 4-trillion-yuan ($585 billion) stimulus, the state steps up its efforts to turn a nation of savers into spenders. Market growth in China is spreading despite the decline in exports. Nationwide, retail sales grew 15% in May, to 1 trillion Yuan, with rural consumption outpacing demand in cities.
It's time for international businesses to sell in China! |
