Slower Growth In China |
The Chinese government is continuing to take steps to fight against a slowing economy - with an announcement to stimulate growth, by cutting the reserve requirement ratio for banks. This it hopes will boost lending by adding more liquidity into economy. The latest IMF economic outlook figures (April 2015) forecast that GDP growth in China is expected to slow to 6.8% in 2015, compared with 7.4% in 2014, and well over 10% for the last decade. Chinese agricultural imports have grown rapidly over the last twenty years, especially since 2001 when China joined the WTO, so will this economic slow down have an impact on China's demand for agricultural goods? Urbanization has led to an increased reliance on food imports, as workers shift from the countryside into new and expanded cities on China's Eastern seaboard. This means a potential labour shortage within the Chinese agricultural sector. This may slow as a consequence of lower economic growth, but is a process which is highly unlikely to