The Global Recession Slams China

By the standards of just about any other country, the latest growth figures in China would be a cause for jubilation. The country clocked 6.8% year-on-year growth for the fourth quarter of 2008 and 9% for the year. But those figures mask an underlying picture that is anything but rosy for an economy that is just starting to feel the full impact of the global meltdown. In fact the economy registered virtually no growth over the third quarter, and things are going to get a lot worse before they get better. "The situation is quite dire," says David Cui, China economist at Merrill Lynch. "I don't expect us to come out of this any time soon because the global demand situation is so bad."

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