The U.S. and European economies are teetering on the edge of recession, but at least the Chinese economy is growing strongly, right?
Not necessarily.
Worrying investors Thursday is news that China’s manufacturing sector contracted for a third consecutive month in September while a measure of inflation picked up, according to Reuters, suggesting the world’s second-largest economy may not be able to provide much of a counterweight to flagging U.S. and European growth.
Reuters reports that “economists and Chinese officials have widely predicted China's growth will slow, largely because of waning exports. The country, known as the factory to the world, is especially vulnerable to fading demand from the United States and Europe, its two biggest export markets.”
Reuters also notes that domestic demand in China is still robust, and “that should keep China's economic growth securely above 8 percent, the level that many economists see as the minimum required to generate enough jobs for the country's rapidly urbanizing population.”
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