Asia - China faces slowing export growth

So far in 2008, the Chinese economy has gone from high growth and high inflation risk, to lower growth and lower inflation. The current phase is likely to last for two or three months longer, but by the year-end the economy will enter the next phase, in which both growth and inflation will become more stable. Economic data are mixed. For instance, the Purchasing Managers' Index fell below 50, but growth in retail sales accelerated. To make sense of economic trends, it is important to recognise there are two sources of weakness - one is supply-led and is temporary; the other is demand-led ...