Beijing (AsiaNews) - Chinese growth in the April-June quarter of 7.5% is the lowest figure for over 20 years. In the previous quarter (January-March) the figure was 7.7, indicating an increasingly consistent slowing down, although analysts say that the reduction was predictable. The data was published today by the National Bureau of Statistics.
The reasons for the decline can
be attributed primarily to the decrease in demand for Chinese products in the greatly
suffering U.S. and European economies, which reduced imports. The second reason
lies in Premier Li Keqiang's block on bank loans and new financial incentives.
In 2008-2009, in the middle of the global economic crisis, China launched a stimulus
package of 4 trillion yuan (500 billion euro), creating high inflation and bad
loans for banks at risk of insolvency.
A spokesperson for the Bureau of Statistics states that "the major indicators are within our targeted range but we face a complex situation".
In fact, the leadership set growth
at 7.5%, for this year but according to many analysts even this target will be
difficult to reach without injecting new loans.
Li Keqiang pointed out several times that it is time for the China to rebalance the economy, so far based on huge investments - often unproductive - and export of products at competitive prices, thanks to the low labor costs.
Many economic institutions, including the World Bank - have constantly urged China to build its internal market potential to protect itself from a reduction in exports, to increase wages to boost domestic consumption, curb aid to state-owned enterprises - a source of corruption among members of the Party - and encourage private industry.
The rain of loans from
state-owned enterprises (in the first three months of 2013 to the tune of 7.5 trillion yuan) is once again creating a
recovery in the construction and an increase in house prices. However it is
generating a real estate bubble. Already
in China, at least 50% of new homes built since 2007 are empty and without
It is estimated that all the buildings under construction can accommodate at least 200 million people, the equivalent to the increase of the urban population over the next 15 years.