The notices from the Chinese government that GDP improvement in Q1 will disappoint grew as the Bank of China said the figure would be a disappointing 8.2%. That is against 8.9% for the full year 2011.
Matters may get worse. PMI data has shown a sharp slowdown of manufacturing. The housing markets in almost all large cities have fallen which could cause a pullback in consumer spending. The government has made it easier for banks to move money into the markets, but, so far the effect of that have remained unseen.
According to Sina.com,
The report said sluggish growth for China’s trading partners in the European Union, the United States and Japan, as well as excessive industrial capacity and shrinking domestic demand, will be major challenges for the economy this year.