China's growth rate of their economy has been slowing down year by year. Although it has been a fairly steady decline each quarter, this year's growth rate is slower than last years, which was already China's slowest growth rate in the last 25 years. Most economists say there could be three outcomes of this decline. The first is a financial meltdown, as China has a whole lot of credit piling up. The second is an increase in state spending to try to increase the growth rate. The third is the Japan outcome: tolerating economic stagnation for a time.
I did not know that this was happening in China, it's very interesting, I need to read more on why the growth rate is slowing. I really don't think that this will cause any sort of major financial crisis for China. Although the growth rate is slowing, at least there still is a growth rate, and it is fairly stable. I definitely don't think this will be a huge problem for other countries either, nothing like Europe struggling with the UK. I really am not sure which outcome China will face but hopefully it won't be for a while. I think I agree the the Japan outcome is probably the best for China. You just have to stick it out sometimes!
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