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May 2012 International Economic Fundamentals

Ally

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Is a China hard-landing in the works?




You see a lot of fretting about China`s slowing economy these days, but just how bad is it? A quick look at the country`s gross domestic product shows that growth has slowed to 8.1 per cent in the first quarter (year over year), down from 8.9 per cent in the fourth quarter. That marks the first back-to-back growth below 9 per cent since the financial crisis of 2008 and 2009.





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Ally

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We've seen this China story before - in Japan




In what year will China pass the United States to become the world`s largest economy? To the economic cognoscenti, it really is a matter of when, not if. The Economist even has an online game: Enter your assumptions for growth, inflation and currency, and the website spits out an answer. The magazine's default settings have the Big Event occurring in 2018.





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Ally

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Year of the Dragon brings baby boom in China




In the Year of the Dragon, the lineups at the Beijing Obstetrics and Gynecology Hospital are longer than ever.




Moms-to-be may wait two hours for a blood test, or nearly three for an ultrasound. At other hospitals, women complain of lineups beginning at 3 a.m. for the 7 a.m. scheduling of appointments.





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Ally

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Why the Eurozone won't 'muddle through'




The euro zone has been a mess since the autumn of 2009, when Greece admitted it had been fudging its debt figures for years. Since then, we`ve seen three sovereign bailouts, one massive sovereign debt restructuring, endless European Union crisis summits, savage austerity programs and an ocean of liquidity injections into dying banks. Somehow the haphazard, lurching -- and occasionally moronic -- response to the so-called debt crisis managed to keep the 17-country euro zone intact. Barely.





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