According to a report by the Asian Development Bank (ADB) economic growth in China is expected to dip to hit 9.9 percent this year and 9.7 percent in 2009. Concerning the East Asia in general the growth rate will moderate to 7.6 percent in 2008 and 2009 comparing with a growth rate of 9 percent in 2007. Such economic growth slowdown is attributable to the global economic slowdown, sharp rise in food and energy prices and inconstancy of the financial markets.

Rising inflation is a serious threat to the region’s sustained, strong growth as high import costs of food and fuel threaten to trigger a price and wage spiral, unleashing more inflation, the insider commented. Although the inflation rate had dropped 1.6 percent in February, the possible energy price liberation may bring the high rate back. And all signs show that a second-round price effect may be underway.

And the worsen economy situation especially the banking crisis has triggered global worry that the economic slowdown across the globe may continue. And Chinese economy is influenced by it.

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chinese economy, inflation, slowdown, US economy