Impact of China's Economic growth slowdown on India

The Chinese Premier Wen Jiabao recently stated that the government was targeting a growth of 7.5 per cent in 2012. The fears of chinese economic slowdown has been prevailing since past couple of years which is now becoming a reality. 

While there is no hard landing, the world has become accustomed to China growing at 10 percent per annum. So, any slowdown would have global impact. Also, as China is the largest importer of base metals (lead, zinc, aluminium, copper and nickel), the slowdown has made commodities market nervous. Most global commodity stocks like Alcoa, Rio Tinto, Tata Steel, Hindalco are down significantly in past one week or so.

China's GDP Crosses $5 trillion

China's GDP touched 32.07 trillion yuan or $5.01 trillion in the first nine months of fiscal 2012, up 9.4% year-on-year. The economy expanded by 2.3% in July-September on a quarterly basis.

There have been concerns that the debt crisis in Europe may hurt growth in the region and dent consumer demand.That is likely to have a big impact on China's export sector, as the EU is the world's biggest purchaser of Chinese goods, with the market worth about $380 billion in 2010. In view of the economic crisis in US and EU, analysts predict a continued drop in China's exports in coming months.

China's GDP growth to fall below 9% after 10 Years

China's GDP growth may drop below 9% in 2012 due to the overall slowdown in global growth. China's GDP grew by 10.3% in 2010  while in 2008 and 2009 it maintained the annual growth of more than 9%. The last sub 9% growth was in 2001, when the economy expanded by only 8.3%. China's economy is highly dependent on Europe and North America, for its exports to these regions.