China’s GDP shock may be good for everyone in the long run

Is the Chinese economy for turning? The country has reported a ‘shock’ GDP growth of only 7.7 per cent for the fourth quarter.

Yes, I know — if only Britain could get such shocks. But economists were expecting China to post an 8 per cent climb and, along with Fitch’s recent rating downgrade and today’s Moody’s lowering of the nation’s credit outlook, it’s hard evidence the world’s second largest economy is slowing. Analysts are falling over each other to slash their 2013 predictions.

It’s obvious how much international markets have been relying on the Chinese engine to haul the global economy out of the mire. The GDP figures sent markets tumbling – from crude oil to metals, from the euro and sterling to Prada shares. Gold is in meltdown.

It all comes at a bad time, what with recent economic data from the US not being reassuring, and the eurozone hobbling from crisis to crisis.