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Justin Kuepper

Experts Divided on China's Slowdown

By April 5, 2012

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There is no question that China's economy has been slowing down, but some investors fear the slowdown is happening a bit too rapidly. World markets have fallen this week amid such concerns, although experts remain somewhat divided on the issue.

On the plus side, some argue that the country was growing too fast for its own good in the first place. U.S. Treasury Secretary Timothy Geithner is a member of this camp that recently noted that the slowing of the country's economy is no cause for alarm.

However, many analysts believe that China's economy is decelerating too quickly. The government recently lowered its target growth rate to 7.5% in order to pave the way for an economy focused on consumer demand, but a recession in Europe has exacerbated the effect.

There are also some signs of concern among Chinese officials. The Ministry of Commerce recently designated April as the first "month to promote consumption", according to China Daily. And some sources are said to be working on policies designed to stoke consumption.

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