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Chinese Economy Not Growing as Fast Now as Before

October 22nd, 2010 | 1 Comment | Posted in News

China has proven to be a very robust global power house in terms of its economy in recent years, but some experts are saying that this is set to change. That happens to look like precisely the case at this time as China’s economic growth has lost momentum for yet another consecutive quarter which means that many are celebrating, odd as that sounds. Those who were worried about China growing so rapidly that the growth would not be able to be sustained now have the relief of seeing that it does appear to be slowing to a more normalized level. The actual Gross Domestic Product of China, which is the more economically viable measure of the nation’s output according to many experts, actually grew during this time at a rate annualized at 9.6% when it was calculated for this 3rd quarter of 2010. These figures were ascertained from the National Bureau of Statistics and released to reporters.

This growth rate may seem impressive to countries that are still rebounding from the recession China managed to dodge, but the fact is that this pace is significantly less than the 11.9% growth seen just at the beginning of 2010. The good news, according to experts who monitor the Chinese economy for a range of investment capital firms, is that the economy is doing quite well in terms of how its exporters are faring, but it is also doing well for countries that supply China with goods. Additionally, prices for consumer goods and services have risen 3.6% during this time and led to higher prices for food.

The UK to See Drastic Financial Changes and Spending Cuts

October 21st, 2010 | 1 Comment | Posted in News

It appears, according to recently released statements from the Government of the United Kingdom, that there are big changes coming to Britain. Economists and political critics are calling the latest changes to hit the UK some of the most drastic in recent times, in terms of their ability to alter public finances. The changes are designed to reduce the deficit by shrinking the size of the UK Government, but the cuts to the armed forces and welfare alarm many. In addition, the idea of banks being taxed more heavily and the age at which a person is able to legally retire being raised is extremely distasteful to many British citizens who are already hitting the web to voice their outrage at the situation. While health care is not said to be affected by the coming cuts in spending, every other sector of the public sector is expected to experience significant changes over the next 4 years. In total, more than $128 billion is set to be sheared from the government’s budget.

From a political stand point, those who oppose the Conservatives that now rule the UK are not happy with the situation, but the ruling party has explained that unless the changes are made then public debt will crush the economy. Up until this point, a full 12 percent of the Gross Domestic Product of the UK each year had been sucked away by the deficit. Now, with 490,000 jobs being swept away from the state, there will be massive changes in the UK. The cuts have gone so far that the royal family itself will be affected and not given the same level of subsidies they once enjoyed.

Produce Price Index Up Slightly Now

October 17th, 2010 | 9 Comments | Posted in News

In what looks like potentially good news for the United States economy, the PPI which stands for the Producer Price Index that tracks finished goods shows a rise by a rate of 0.4% for the month of August 2010. Economic analysts had been hoping for a rise of 0.2% so this is a bit better than expected and it means that finished goods did better than food or energy. That over all ‘core inflations’ rose by just 0.1% and this includes all items produced in the US. Headline prices are what the PPI measures and it is tied to inflation which rose by 0.3% in July of 2010 – not good news for US consumers. This is a rise in PPI that is higher by a rate of 4% since 2009. Food prices shot up by 1.2% and energy rose by half a percent. Economists right now consider the level of inflation, which keeps falling and rising since June of 2010 at a fairly consistent rate of change, to be in what is nick named the Goldilocks Zone. This means, among economists, that the prices are not overly hot or overly cold. That is good news for producers who had been fearing serious price deflation and is also good for consumers who could be facing serious inflation, on the other hand.

Right now, say economic experts, the problem is that the further up the chain of production one goes, the more volatile the market gets. This means that wheat is far more volatile at this time than is a finished product such as flour, or even more stable, bread.