China boosts consumption growth
April 2, 2010
Ever. When China publishes a number, it rarely falls in the half-measure. The purchasing managers' index, which measures both new orders and industrial production, released Thursday, has gained 3 points in March according to official statistics (55.1). It is at its highest level since its inception six years ago.
China, which is expected to announce an increase of 12% of its GDP (gross domestic product) in the first quarter, beating all records, remains the leading exporter, ahead of Germany (1 202 billion last year), but , surprise, it also consumes.
It will, if one believes his prime minister, Wen Jiabao, a deficit in its trade balance of 5.9 billion euros in March, the first since April 2004. This dip is due to the explosion of imports. They had increased from 85.5% in January. They still grew by 44.7% in February.Oil, coal, but also high technology products and luxury goods. That is what the government calls "accelerating change our mode of economic development.
The recovery plan 4 000 billion yuan (432.7 billion euros), launched in late 2008, that does not fund major projects. It also subsidizes purchases of appliances, cars, farm equipment. Thanks to him, retail sales rose 15.5% last year.
China has become the biggest car market before the United States. It is also the second customer of Bordeaux wines, after the European Union. Its purchases of gold are expected to double in the next decade, according to the World Gold Council payday loan.
The scourge of inflation
"The Chinese consumer spending weighs only 35% of the country's GDP, over 50% against the rest of Asia and from 60 to 70% in most OECD countries (Organization for Economic Cooperation and Development economic), "notes a recent study by Nomura. But she sees four reasons to explode: the growing appetite for Chinese goods as durable and as their wages increase, the expansion of cities in central and western countries, the development zones rural and the need to increase the share of services "which represent only 40% of GDP against 60% to 80% in high-wage economies."
But Beijing must first curb the twin evils. He needs to control inflation at 2.7% in February was the highest for sixteen months.For the first two months of the year, consumer prices rose 2.3% while retail sales increased by 17.9%. In Shenzhen, near Hong Kong, the square meter of land is sold 2 000 euros! China should also reduce the social divide. Urban residents earn 3.3 times more money than the people of the country, against 1.8 times in 1983.
Only the introduction of a real system of social protection for all allow the government to persuade households to save less to pay their pensions, their routine care, education and children to consume more.
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