The Chinese economy is slowing down and this has big consequences. Unemployment rises and this could lead to social unrest. So the impact of the global crisis on the Chinese economy is also very big. Unemployment caused by productions cuts are not the only consequence, many companies are going bankrupt.
The export is slowing down and the property market is in a state of crisis and that is also one of the reasons why China had a negative growth, but they have good forecast for the future and they try to keep the people calm, but this is not easy. Already there were protests by fired workers.
The government and the central bank had to take measurements to slow down a further diminution. One of these measurements is lowering interest rates from 6.66% to 5.58%. This cost a lot for the government but it’s necessary to stabilize the Chinese economy.
It’s not the fault of the Chinese government that the economy is not doing well but I think the government and the central bank need to do more than lowering interest rates. They should help companies who are not doing well. Lowering taxes is also a good idea, because they can attract new investors .
The export is slowing down and the property market is in a state of crisis and that is also one of the reasons why China had a negative growth, but they have good forecast for the future and they try to keep the people calm, but this is not easy. Already there were protests by fired workers.
The government and the central bank had to take measurements to slow down a further diminution. One of these measurements is lowering interest rates from 6.66% to 5.58%. This cost a lot for the government but it’s necessary to stabilize the Chinese economy.
It’s not the fault of the Chinese government that the economy is not doing well but I think the government and the central bank need to do more than lowering interest rates. They should help companies who are not doing well. Lowering taxes is also a good idea, because they can attract new investors .
1 comment:
I agree with your opinion. I also think that the crisis isn't the fault of the government or the central bank of China. But it's their responsibility to give a boost to the economy. Their first measurement, lowering the interest rates, is a good idea. But unfortunately it won't be enough! Like you said, I think that lowering taxes would be an other good measurement and it possibly will attract new investors. And new investors are good for the economy so...
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