SLOW ECONOMIC

GROWTH IN
CHINA

What is economic slowdown?

The rate of economic growth slows in an economy

Occurs when the rate of growth in the GDP of an economy slows from
the previous period

Difference between economic

slowdown and recession
Economic slowdown

Recession

Reasons??

1) Global Slowdown

Manufacturing contributes around 59% to the Chinese GDP. And mind it, all of it is for
the export. But, the slowdown in the EU, Japan and South Korea has led to reduced
demand.
2) Housing Sector Slowdown
The real estate sector accounts for between 25% and 30% of Chinas GDP (if upstream
and downstream industries such as steel, cement, glass, furniture, and appliances are
included).
3) Steel Sector
There has been a decline in Automobile sector[2], construction sector (these industries
require steel and iron). Plus, the concerns about the environment. Therefore, reducing
the demand for iron and steel.