China’s Economy Slowing, Should Have ‘Soft Landing,’ Conference Board Says
China’s Economy Slowing Significantly
Nelson Ching/Bloomberg
Pedestrians walk through a commercial and shopping district in Kunming, Yunnan Province, China.
Pedestrians walk through a commercial and shopping district in Kunming, Yunnan Province, China. Photographer: Nelson Ching/Bloomberg
Aug. 16 (Bloomberg) -- Adrian Mowat, JPMorgan Chase & Co.'s chief Asia and emerging-market strategist, talks about the outlook for Asia's economies and financial markets. Mowat speaks in Hong Kong with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)
Aug. 16 (Bloomberg) -- Bart van Ark, chief economist of The Conference Board, talks about the outlook for China's economic growth. Growth in China, the world’s second-biggest economy, is slowing "significantly," according to The Conference Board, a New York-based research organization. Van Ark speaks from New York with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)
Growth in China, the world’s second- biggest economy, is slowing “significantly,” according to The Conference Board, a New York-based research organization.
“The economy is significantly moderating right now and also over the next couple of months,” Bart van Ark, the organization’s chief economist, told Bloomberg Television from New York ahead of the release of the organization’s leading indicator for China. “We still expect it to be pretty much a soft landing.”
The data is due at 10 a.m. Beijing time today. China’s economy is cooling after the government raised interest rates and banks’ reserve requirements and extended curbs on the real- estate market, adding to concerns about the outlook for the global economy. Christine Lagarde, the International Monetary Fund’s managing director, today urged developed countries to support economic growth even as they make fiscal cuts.
China’s economy is full of imbalances that need to be addressed, van Ark said. The nation needs to shift to more of a consumer economy and to build more “social infrastructure rather than the hard infrastructure, he said.
The nation’s expansion may slow to 9.2 percent in the third quarter from 9.5 percent in the previous three months, the China Securities Journal reported today, citing the State Information Center.
Demand Slows ‘Sharply’
“Growth in China is actually slowing more seriously than the headline numbers suggest,” Kevin Lai, an economist at Daiwa Capital Markets in Hong Kong, said in a Bloomberg Television interview today. He said that trade volumes showed demand slowing “sharply” in China and the world.
A slowdown in Hong Kong has highlighted the threat of another global slump as weakness in the U.S. economy and a debt crisis in Europe cap demand for exports. The city last week reported that gross domestic product contracted in the second quarter from the previous three months.
“For the advanced economies, there is an unmistakable need to restore fiscal sustainability through credible consolidation plans,” Lagarde wrote in the Financial Times. “At the same time we know that slamming on the brakes too quickly will hurt the recovery and worsen job prospects.”
--Susan Li, Zheng Lifei, with assistance from Victoria Ruan. Editors: Paul Panckhurst, Ken McCallum.
To contact Bloomberg News staff on this story: Victoria Ruan in Beijing at +86-10-6649-7570 vruan1@bloomberg.net
To contact the editor responsible for this story: Paul Panckhurst in Hong Kong at ppanckhurst@bloomberg.net
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