China: S&P expects a soft landing in 2012

Date: Thursday 02 Feb 2012

2012 will be a year of soft landing for the Chinese economy according to the credit rating agency Standard & Poor’s (S&P).

According to a report titled “Credit Outlook: Chinese Dragon to Fly into a Soft Landing in 2012”, S&P expects the most likely scenario for the motor of the global economy to be a drop in gross domestic product (GDP) growth to about 8% from the 9.2% slowdown registered in 2011.

The agency feels that the debt crisis in Europe and the weak recovery in the US will reduce demand and put a drag on China’s export-dependent economy.

"We expect the Chinese economy to fall further in 2012 to about 8%, our base-case scenario for our current ratings.

“We also project that there is a one-in-four chance of a medium landing of 7% growth to occur, and a one-in-ten likelihood of a hard landing of 5% GDP expansion," S&P said.

JM

« Go back to news channel

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE