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Asia & the Pacific Rim => China & the Asian Empires => Topic started by: Azrael on May 19, 2010, 03:07:57 pm

Title: China boom may be ending, warns OECD
Post by: Azrael on May 19, 2010, 03:07:57 pm
China boom may be ending, warns OECD
The breakneck Chinese economic boom may be starting to unravel, the Organisation for Economic Cooperation and Development has warned.

By Edmund Conway
Published: 5:30AM BST 11 May 2010
China boom may be ending, warns OECD.

The Paris-based institution warned that the economy, which has continued to grow rapidly throughout the recent global recession, and has helped support growth worldwide, may be facing a sudden "halt in expansion".

The warning, revealed by the OECD's composite leading indicators (CLI) a measure of economic turning points will fuel fears that the Asian giant may be set for more troubled times.

The OECD said the CLI for China has dropped from 102.7 points at the turn of the year to 102.2 in March. The fall is significant, since the indicator is regarded as a reliable bellwether for turning points, and has a reliable record of forewarning the peaks and troughs for leading economies in recent years. It came as the People's Bank of China released a report saying that it would improve the technical mechanism of the yuan's peg to the US dollar.