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Stable Oil Prices are the Key to Chinese Growth
Last week, oil prices dropped on concerns that Chinese demand might begin to slip. It appears those concerns are going to be short lived. According to a report by the IMF this morning, Chinese GDP will rebound strongly to 8.8% in 2013, up from a dip to 8.2% in 2012, propelled largely by increased domestic consumer consumption. That's important to note since the Chinese also need reliable energy sources to continue this remarkable, ongoing boom. After all, China needs to procure oil supplies from around the globe to facilitate this sort of growth. Click here to continue reading...
Last week, oil prices dropped on concerns that Chinese demand might begin to slip.
According to a report by the IMF this morning, Chinese GDP will rebound strongly to 8.8% in 2013, up from a dip to 8.2% in 2012, propelled largely by increased domestic consumer consumption. That's important to note since the Chinese also need reliable energy sources to continue this remarkable, ongoing boom. After all, China needs to procure oil supplies from around the globe to facilitate this sort of growth. And as China rises to the international stage, its bureaucrats are learning the hard way that all oil exporters are not the same, and political vulnerabilities and economic conditions are making it more and more difficult to procure oil over the long-term. In fact, China's three largest sources of oil are all undergoing their own levels of political instability, which could disrupt long-term Chinese growth. They are:
Moving forward, China will be learning the hard way how foreign policy and economic and energy development go hand in hand. That 8.8% growth rate will become more vulnerable over the long term as China's pressure to sustain it mounts. Related Articles and News:
Tags: Oil Prices |
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