24/7 Wall St. Daily News
Since China has grown so fast over the last decade, that the definition of "recession" may be different than it is in the US or EU.
China's growth slowed to 10.1% in the last quarter. That means the economy has been losing its acceleration for more than a year.
Bloomberg writes that ``China needs much faster growth than an average Western country as it has to generate 10 million jobs a year,'' said Tao Dong, chief Asia economist at Credit Suisse Group AG in Hong Kong. ``Eight percent growth in China is equivalent to a recession. Below nine percent would make the authorities quite nervous.''
Of course, a sharp drop in GDP in China would mean that imports from countries, especially the US, may begin to fall off. It begins a great circle of faltering economies around the world which could cause a recession as deep as the one in 1973/1974. The signs are there. Plummeting real estate values. Overextended credit. The world's fast growing country's losing their steam
Douglas A. McIntyre
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