China's (Temporarily) Slowing Economy

As opposed to the growth rates of over 8% that people have come to expect from China, a growth rate of between 7.5% and 8% is being projected for this coming quarter in China. Even the Chinese government is making 7.5% growth in GDP its official target. The Chinese leadership is not quite sure what is causing the slowdown in growth, but Chinese officials are moving to remedy the situation, as to allow 8% GDP growth for the year. Whether or not these measures will work remains to be seen, though there is a good chance that they will work to an extent. These measures include lowering the tax rate — a year after China had its largest tax intake ever — and easing regulations on credit, by lowering the amount of money that banks must have in reserve; this is designed to free up more credit for loans. The government may also be investing in infrastructure, in order to stimulate the economy. Of course, even with a slowing on growth, analysts and the Chinese government expect growth rates to once again rise after this quarter.

Of course, if a Western nation had a GDP growth rate equal to China's "slow" growth rate, it would be bigger news than China's slowing growth, and for good reason. Western growth tends to hover around 2% to 4%.