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Crisis Briefing - 21-Oct-08

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Chinese GDP slows, oil price bounces. China’s economic slowdown is accelerating. GDP growth has eased from 11.4% in 2007 to 10.6% in 1Q08, 10.1% in 2Q08 and now 9% during 3Q08 (well below market expectations for a 9.7% increase). It is the slowest pace of economic growth in China since the SARS-affected 2Q03, while industrial production slowed to 11.2% in 3Q08 – its slowest pace since 2002. Several years of strong economic expansion mean China is now growing off a significantly larger base

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