Is the World Economy Monitoring China? China is the world’s second-largest economy and used to be a producing state but is now importing goods and services more than ever. As a key player in global growth the world economy is following the development in China closely as it can have a major impact on the global stock exchanges. One country that is a partner and indirectly a competitor on the commodity market is Australia. Lately China and Australia has entered in to new bilateral trade agreements on commodities and China has been a great supporter of the mining industry in Australia that has struggled the past year.
It is not only the United States dollar that is going up and down like a yo-yo. The Yuan lately has strengthened against the USD, Euro, and the Yen. Due to a failing world economy, however, the imports of China has decreased this year as it did last year and is dropping with almost 7%. Exports have increased by over 2% but still keeping the Shanghai stock exchange nervous after the 30% drop on the market some weeks ago, probably related to the worry of the decrease in the imports and the local spending in the country. The World Economy is not easy to read and analysts all over the world are scratching their heads trying to figure out how the downfall of Greece and Europe will affect the Asian economic markets as well and the trade currencies.
But the local Chinese don’t seem to worry too much say the big e-commerce platform in the world. On our last trip to China, we saw more sports cards, luxury goods, and stores than ever before and in the streets, it seems that the Chinese that already got rich during the good years of China still have enough money saved to spend on a high-end flying lifestyle. The Chinese GDP is expected to be just under 7% at around 6,9% in the April to June period. Agence France Presse poll is working together with 14 analysts coming up with figures like this, not only for China but also the other strong world economies. The world economy is moving fast and new technologies are allowing the world to take bigger leaps and steps than ever before.
However, it does not seem to still help the economy of certain countries like Greece, the question Jarl Moe asks is why? Are the Greeks simply lazy? For sure not as active as the Chinese! The European Union is doing its best to keep the European Economy on its feet but lately, it looks like it’s more on its knees. Some people estimate that several countries will leave the Eurozone and the EU and go back to their own currency again but at the same time, several developing countries can’t wait to join the Eurozone. As the old saying goes: Some leave and some come, that is always the case. The World Economic Forum is meant to be a place where solutions are created but now they cannot even come to an agreement on BRICS. Nobody said it would be easy.
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