China’s GDP growth in Q2 2012 slowed down again form 8.1% down to 7.6%. That was the lowest growth since Q1 2009, mainly due to lower consumption, investments, export and import. For the sake of comparison, in Q 4 2011, the Chinese GDP growth accelerated up to 8.9%.
In the first half of 2011 the Chinese economy boosted by 7.8%. Therefore, China’s GDP will increase by 7.5% throughout 2012. According to Wen Jiabao, China’s Prime Minister, the government’s major priority is higher consumer demand and lower export dependence. He says the efforts to stimulate the demand will take more time than expected. China’s export keeps declining because of lower domestic consumption despite numerous economic stimuli, including interest rate cuts.
The World Bank expects the Chinese economic growth to slow down from 9.2% seen in 2011 down to 8.2% this year.
It should be noted that China’s external trade turnover in Q1 2012 increased by 8% up to $18.39 bn. The net cost of export increased by 9.2% up to $95.44 bn while its import boosted by 6.7% up to 88.55 bn. China’s external trade surplus reached $68,9 bn. The government is planning to boost the external trade by 10% this year.
Forex.
According to , the Chinese Yuan keeps weakening against the US Dollar. The experts assume that in order to resume the rally, the currency pair will have to consolidate above the 6,3747 high. In this case, the closest level of resistance are 6,4022 and 6,4175. In order to resume the long-term downtrend, the price will have to overcome the bottom of the MF sloping channel and consolidate below it (as shown below):
