Indian economy is in stagflation: Moody's - Indian Express
Which means slowing growth and high inflation.
China on the other hand, our inflation rate is now only 3%, so we have a lot of room for growth-boosting measures like interest rate cuts.
here is how the mental midgets measure themselves . The topic is about China cutting rates and the Chinese are about " But but India did blah blah". They compare their growth to a country that is 3 x less GDP. where were you at same GDP level of india back then? will we ever know- nope, because they fudge and hide any bad numbers.
We all remember Chinese bragging here, their economy has no real estate bubble- then it happened.
Mocking india for dropping to 6-7 % range and that they were rocking it. and guess what they are now predicted to 7%
Saying their economy was jamming - now their bank , surprising everyone, cuts rates
You never know what is the truth with the Chinese. Other countries you see facts and honest figures. You speculate that " hey- their institution may cut rates or increase it in the coming days". With China- you wake up one day in the morning and go WTF? But we can all expect them to wake up and go " But India! "
Looks like the Dragon has finally ran out of fuel!
this is the best time to overtake the chinese groowth rate, while they are free falling..
China growth could fall below 7.0% in Q2 report - Channel NewsAsiaChina growth could fall below 7.0% in Q2: report
SHANGHAI - China's economic growth could fall below 7.0 per cent in the second quarter, state media on Wednesday quoted an economist at an influential government-linked think-tank as saying.
"If June economic statistics do not show an improvement, second quarter GDP growth perhaps will fall to below 7.0 per cent," vice-chairman of the China Centre for International Economic Exchanges, Zheng Xinli, told the overseas edition of the People's Daily newspaper.
The research institute is supervised by the National Development and Reform Commission, the government's top planner.
China's gross domestic product (GDP) grew an annual 8.1 per cent in the first quarter of 2012 -- its slowest pace in nearly three years.
The government has reduced its economic growth target for this year to just 7.5 per cent, down from growth of 9.2 per cent last year and 10.4 per cent in 2010.
China has just released economic data for May which provided further evidence of a slowdown in the world's second-largest economy.
Industrial output grew at a slower-than-expected 9.6 per cent year-on-year in May, a faster clip than the previous month but still near three-year lows, the data showed.
Zheng, who is former deputy director of the Policy Research Office of the Communist Party's powerful Central Committee, said China's GDP growth is typically three to five percentage points below industrial production.
China is already seeking to boost economic growth, cutting reserve requirements for banks three times since December and slashing interest rates just last week.
The government is also boosting bank lending and encouraging domestic consumption through favourable polices for selected sectors, amid weak exports to key markets like the United States and Europe.
In May, the World Bank forecast China's economy will expand 8.2 per cent in 2012 but it warned policymakers must prevent an excessively abrupt slowdown.
For doers, every second is an opportunity to take over something. For big mouths, every second is an opportunity to show their mouth size.
Right. In Chinese eyes, there are full of crises and risks, they fear this and fear that.
In Indian eyes, everything is shining and incredible.
In fact, there was no lack of chances for India to take over, alas nothing happened. If you Indians just spend time talking, not to fix business hostile bureaucracy, primitive infrastructure, you will never have chance even when there are plenty of opptunities.
This is precisely why India is lagging more and more behind China, month by month and year by year.
Back to the topic.
Reducing interest rate is normally seen as a measure to ease credit and help money supply. In 2007-08 financial crises, US Fed weighted on liquidate versus insolvency to take measures. In a natural (capitalist free market) economic cycle, crises are supposedly to weed out bad companies, trim unhealthy economic operations, and let good guys take over the market – of course with a heavy toll. Fed intervention meant to mitigate the pain, and buy time to restructure the economy. Unfortunately the 1% in US doesn’t quite live up to expectation, instead using taxpayers’ money to fatten their own pockets. For instance, Citi Group is still practicing predatory mortgaging (see WSJ couple days ago), aiming at good bonus. Thus US economy is still in precarious situation, limping along.
Now we can see the key point is to improve economic fundamentals. China’s early fast track of development is NOT sustainable. Slow down the growth rate to a reasonable pace is a good thing, provided that the time thus bought helps Chinese 1% to improve economic, and, thereafter, political, structure/quality/models.
Before I really know something about India, I hated CPC, I cursed the system. I went to Chinese embassies to demonstrate number of times with other folks.
Around 2000, I saw more and more Indians in USA, I started to make friends with those Indians and therefore learnt something on the other side of the planet. I feel CPC is not that bad. In fact, given Asia is Asia, I find CPC is at least 100 times better, if not 1000 times better, than Indian democracy.
Now you see how amazing India comparison and blah blah can help.
China has a gigantic economy. So a growth rate of 7% is still a very large number compared to other countries (except the US).
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