The recover of Chines economy after a long period of time

Gold price continue loses after gloomy chines data

Chinese economy recovered after a long period of time, where China recently announced an expected data of gross domestic product for the fourth quarter of 2012, which showed that the Chinese economy already returned to recover. The gross domestic product grew in the fourth quarter of 2012 by 7.9% on an annual basis, a significant increase on the low rate, which lasted for three months.

In which the GDP stood at 7.4% as an annual basis in the third quarter of 2012. Despite the improvement in GDP (gross domestic product) in the fourth quarter, it did not exceed last year’s growth average, growth in the Chinese economy in 2011 was 9.3% as an annual basis.

The reasons for the relatively low growth of the Chinese economy, in the first three quarters of 2012, to several factors. Most notably that, the down hit in Chinese exports due to the slowdown in global demand, resulting a decline in GDP. On the other hand, it also affected the local economy down corporate profits, and the weakness of the consumer sector. Therefore, Chinese recovery comes at an unexpected time where global growth is still witnessing a slowdown. This improvement came because of the expansion of monetary policy and increased fiscal spending, especially on infrastructure projects.