Still Predicting Gold
With the Olympics now officially over, the medals won and dreams realized or put aside for another time, it might be a good time to take another look at the Chinese economy and where it’s heading.
On the one hand, you can definitely argue that the Beijing Olympics were a success. The Chinese might not have won the most medals, but they definitely topped the golden list with a total of 51, 15 over that of the U.S. But while many people – both national and international – were expecting an economic rise from the games, it appears that they didn’t help at all.
And that is especially made plain by the news that China is considering a 54 billion dollar stimulus to boost their economic morale. Including tax cuts and government spending, the plan may or may not help. That’s all up in the air much like their prized gymnastic team’s actual ages.
Partially due to the U.S.’s lowering demand for Chinese imports, their slowdown can also be attributed to the quake that destroyed entire towns back in May of this year, and perhaps even the Olympics themselves, which cost a hefty sum to say the least.
However, while the government might be broadcasting their immediate concern, in the long run they don’t see any damaging affects. Since there have been positive changes in trade, retail sales and investment figures, they’re confident that the current trend won’t last long.
http://www.smartprofitsreport.com/archives/2007/emerging-markets455.html
Monday, August 25, 2008 — by Jeannette Di Louie, Assistant Editor of Mt. Vernon Research
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