China is experiencing the slowest growth in five years, the New York Times reported this weekend (Oct 19, 2008). Declining exports, a weak real estate market and closed factors due to the Olympics contributed to the 9 percent third quarter slump.
"But China has more options than most countries to cope with slower growth. For starters, inflation is slowing at the consumer level — the government said on Monday that it was 4.6 percent in September, down from 4.9 percent in August and the fifth monthly decline.
With less to fear from rising prices, China’s central bank has already begun reducing regulated interest rates and loosening restrictions on bank lending. With the government running a large budget surplus, the finance ministry has begun lowering taxes on stock and real estate transactions and on exports of textiles and electric machinery."
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