China CPI Likely to Fall Below 2 percent

China’s economy is to see a continued slowdown and the government will implement more economic stimulus in the future.

China’s GDP expanded at 7.6 percent in the second quarter of 2012, the first time that the world’s second largest economy’s growth has fallen below the 8-percent mark since the fourth quarter of 2009.

To boost the currently fatigued economy, China’s top leaders reaffirmed that they will underline stable economic growth and adhere to a proactive fiscal policy and prudent monetary policy to counter the current economic hardships.

The ongoing pace of economic growth is within expectations, but the external environment remains grim and poses difficulties and challenges, according to a newsletter released after a meeting of the Political Bureau of the Communist Party of China (CPC) Central Committee that was presided over by President Hu Jintao on Tuesday.

via Xinhua

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza