Economic slowdown worsens for China

22 January 2009 @ 07:46 am EDT

The unstable international financial crisis has also made a dent in China.


China Economy
In this Tuesday Sept. 4, 2007 file photo, workers assemble toys at the production line of Dongguan Da Lang Wealthwise Plastic Factory in Dongguan, China. China passed another milestone in its stunning rise Wednesday Jan. 14, 2008 when new data showed it leapfrogged Germany in 2007 to become the world`s third-largest economy. (AP Photo/Eugene Hoshiko, File)
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In 2008, China experienced a growth rate of 9 percent; its lowest growth rate since 2001.

In 2007, the growth rate was 13 percent.

Economic growth in three months ending Dec. 31 plunged to 6.8 percent compared with a year earlier, the National Bureau of Statistics reported. That was down from 9 percent the previous quarter and 10.6 percent in the first quarter.

The drop in global demand has led to a wave of factory closures and layoffs, especially in China's export-dependent southeast

A string of major Chinese companies, including airlines, steel producers and insurers, have warned they will report sharply lower 2008 profits.

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