Tuesday, March 27, 2012

China’s economic slowdown may impact Thailand’s export sector (By Zhong Li - Mon, Mar 26th, 2012):




This article talks about China’s predicted economic slowdown may lead Thailand’s export sector into recession while also preventing the worlds’ as well as Thai economy from achieving their targeted growth for this year.  It covers both Thailand and China.  FPO Director-General stated that the fact that foreign investors are pulling out of the Chinese stock market has hinted that an economic in China’s real estate sector is looming near.
In Thailand it is believed that China will soon suffer a severe economic setback, which will see its growth decline to only 6% from the previous estimation of 8-9%. The FPO Director-General of Thailand stated that his office is bracing for the struggles, which may be brought on by China. In addition, they are also looking for measures to deal with the oil situation in the global market, which has pushed the initial cost of transportation up by 0.3-0.4% along with an increase in goods prices and cost of living.It is predicted that China’s economic slowdown will happen in a gradual rather than an abrupt manner despite the Chinese government’s data pointing to a weak growth in the country’s economy.  This may help countries like Thailand prepare as best as they can.

~Chet Matsuura


http://thailand-business-news.com/business/36809-chinas-economic-slowdown-may-impact-thailands-export-sector

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