China’s economy continues to rev, but certainly slower than many had anticipated this past quarter. Growth came in at 7.7 percent, down two tenths from the previous quarter.
China’s growth in factory goods production grew slower than expected. Same story with steel and electricity. It surprised some market types, but not Shaun Breslin at the University of Warwick in London. In a wobbly world economy, China’s exports have taken a hit.
“Demand just isn’t picking up in Europe. So they’re not able to export themselves into high levels of growth,” says Breslin.
But Breslin’s not that surprised by the hiccup. He says in the long-term, China’s trying to move to a more consumer-based economy — which as he sees it, is slower and more steady.
“Rather than growth driven either by exports, or heavy investment in infrastructure as it has been in the last few years, because that’s not sustainable,” he says.