There is a specter haunting to Shanghai and is not pollution. Is the slowdown in economic growth predicted by the index of Chinese manufacturing activity : the preliminary reading of May marks , for the first time in seven months , a decline below the 50-point threshold that separates expansion from contraction due to the decrease of orders. Beijing early to give up for dead , however : analysts remain confident in achieving the goal of 7.5 % growth stated for the year 2013. The unknown , even in the second largest economy in the world, is the labor market : " In China there is a big demographic problem , we see a shortage of labor in manufacturing ," says Adrian Mowat , an analyst at JP Morgan . " Companies like Foxconn and Honhai , which are some of the largest employers in the world, with more than a million employees, have to move out of China to enter at a lower cost ." Despite increases in labor costs at double-digit and an army of 7 million graduates who is about to land , the employment market for now shows no signs of abating. According to experts , the government chooses not to intervene , therefore , at least for now. The country is engaged in a transition that goes beyond the numbers: from a frantic growth based on exports , that is dependent on the destinies of other economies , a slower but stable thanks to robust domestic demand .
Posted on: Mon, 07 Oct 2013 00:26:01 +0000
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