Profits fall in industrial production in China
(AsiaNews / Agencies) - The profits of industrial production in China fell for
a fourth consecutive month, adding to fears of a major slowdown in the Asian
According to the Bureau of Statistics, which released its data today, the gains in industrial production fell by 5.4% in July compared to a year ago, in June they fell 1.7. The Chinese companies are being hit by diminishing demand from Europe and the United States affected by the crisis, at the same time, domestic demand remains weak.
A few days ago, other official data showed that China's exports in July grew by only 1% in a year, in June, the growth was 11.3%.
The second world economy, based on exports and cheap labor, after decades of growth is showing signs of fatigue. In the second quarter of 2012 it grew by 7.6, the lowest value in the last three years.
Two days ago, Premier Wen Jiabao, on a visit to Guangdong, the region with highest exports, announced that new measures are required to support export and help the economy to keep up target growth. But it is not clear the form this stimulus will take. At the beginning of the subprime crisis (2009), China released a 4 trillion Yuan (502 billion Euros) in aid and loans. But this has led to an increase in inflation and a rise in house prices, risking a building bubble.
At present, the Chinese government has just cut interest rates on loans. The publication of data on the earnings of industrial production has brought Asian markets down. Shanghai has dropped by 1.3%.
The decrease in production, profits and slowing of the economy seems to have no impact on employment. Official figures claim that unemployment is still at 4.1%.