Chinese statistics indicate annual export growth was 13.4% in December, the lowest more than two years. It’s indicating that problems with lackluster growth in the United States and the debt-fueled financial mess in the European Union might be busting previous assertions that China and other BRICs nations were somewhat shielded from problems outside of the emerging economies block.
Moreover, there are a slew of problems (property asset bubble, insufficient power production, poor transportation infrastructure, qualified labor shortages) facing the Chinese as they look to stabilize the narrowing importing and exporting activity as well as inflationary pressures.
“None of this is to say that China or any the BRICs are heading back into obscurity or even that their economic challenges will be any worse or better than those facing the U.S. and Europe,” said Kuehl. “It is simply to point out that no set of nations finds itself immune from the vagaries of the global economy.”
Brian Shappell, NACM staff writer