China
China, the most populous country in the world with 1.336 billion people (source: CIA World Factbook, July 2011 est.), has weathered the global economic downturn relatively well. The country’s rapidly growing, vast domestic market has helped to offset the impact on exports from slumping overseas markets. The Chinese government has stimulated domestic demand with loose fiscal and monetary policies. These measures enabled China’s gross domestic product growth to rise to 7.9% in the second quarter of 2009, up from 6.1% in the first quarter. The economy is expanding at a slower pace than the double-digit growth seen in the 2003–2007 period but appears on the track for recovery and has avoided the recessions that have afflicted more advanced economies. However, exports remain weak—they fell by 23.4% on a year-on-year basis in August 2009. But inflation remains subdued and China’s policymakers are unlikely to rein in fiscal or monetary policy until the global recovery is firmly established. Meanwhile, the Communist Party retains its monopoly on power and maintains strict control over the people. In 2009, the authorities have cracked down hard on unrest in China’s Xinjiang province that have reflected tensions between Han Chinese and the region’s Uighur Muslims.
Best PracticeViewpoints
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- Coping with the Crisis: Risks, Options, and Priorities for Developing Countries
- Difficult Challenges Ahead for China and India
- Global Ambitions—China’s Big Banks
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