China`s enonomic growth rate falls

Week Beginning. 03.11.2014


The latest updates show that growth in Chinas secondary sector slowed down since 2013. the current uptated Purchasing Managers Index (PMI) fell to a score of 50.8 from 51.1. Any PMI score over 50 represents growth. Figures also show that the wider Chinese economy is growing at its slowest speed for more than five years now. This is shown by the economic growth rate which is 0.3 % lower than last year. Since the PMI was published last week, China receives even more downward pressure.
Due to this Chinas government have several growth targets. Bejing published measures designed to stimulate consumers spending. This includes relaxing limits on home purchases and investing billions of dollars into Chinas biggest banks. Chinas Central Bank cut certain inter-bank interest rates. The government aims to increase the economic growth to 7.4% this year, which many analyst do not believe in, because the growth ambitions of China are much higher than expected rates in more developed countries. As an example the US economic growth rate is 3,5 % per year. A higher percentage of growth is needed to create enough jobs for the large number of increasingly educated people. The GDP in China is a continuiung up and down as shown below.



This article relates to business in many ways. First of all it links to the topic of Growth and Evolution. A reason why the economic growth rate of China is falling could be the diseconomies of scale. Another reason why this is happening is the spread of globalisation. Furthermore thi artivle also shows the aims and the objectives of the country. This perfectly links to the topic of Organisational Objectives. Objectives always have to be Specific, Measurable, Achievable, Realistic & relevant and Time specific, to work for an organisation. In this case also analyst mentioned that they might not be achievable. China has several ideas of growth strategies, but they need further develpment to succeed.