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World Bank Downgrades China Growth

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By Douglas A. McIntyre Published
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The World Bank’s new “East Asia and Pacific Economic Update” forecasts that China’s GDP growth will only be 8.2% in 2012 which is a substantial come down for a nation which has grown at or near 10% a year for a decade. The report blames the usually suspects.

A collapse of EU economies will hurt China’s export business. Monetary and bank regulation policies by the People’s Republic can only do so much to offset this. There are a few good by-products of the slowdown. The first is that China’s insatiable appetite for commodities, which include oil, will lessen. That should cap any inflation in commodities prices, which has hurt weaker nations around the world.

The other bit of good news is that the forecast is not lower. Many analysts believe that China will have a “hard landing” caused by a sharp decline in exports and a collapse of residential and commercial property values. There is barely a hint of that in the World Bank’s report.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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