Subscribe Login
Jamaica Observer
ePaper
The Edge 105 FM Radio Fyah 105 FM
Jamaica Observer
ePaper
The Edge 105 FM Radio Fyah 105 FM
    • Home
    • News
      • Latest News
      • Cartoon
      • International News
      • Central
      • North & East
      • Western
      • Environment
      • Health
      • #
    • Business
      • Business Bites
      • Social Love
    • Sports
      • Football
      • Basketball
      • Cricket
      • Horse Racing
      • World Champs
      • Commonwealth Games
      • FIFA World Cup
      • Olympics
      • #
    • Videos
    • Entertainment
      • Music
      • Movies
      • Art & Culture
      • Bookends
      • #
    • Lifestyle
      • Page2
      • Food
      • Tuesday Style
      • Food Awards
      • JOL Takes Style Out
      • Design Week JA
      • Black Friday
      • #
    • All Woman
      • Home
      • Relationships
      • Features
      • Fashion
      • Fitness
      • Rights
      • Parenting
      • Advice
      • #
    • Obits
    • Classifieds
      • Employment
      • Property
      • Motor Vehicles
      • Place an Ad
      • Obituaries
    • More
      • Games
      • Elections
      • Jobs & Careers
      • Study Centre
      • Jnr Study Centre
      • Letters
      • Columns
      • Advertorial
      • Editorial
      • Supplements
      • Webinars
    • Home
    • News
      • Latest News
      • Cartoon
      • International News
      • Central
      • North & East
      • Western
      • Environment
      • Health
      • #
    • Business
      • Business Bites
      • Social Love
    • Sports
      • Football
      • Basketball
      • Cricket
      • Horse Racing
      • World Champs
      • Commonwealth Games
      • FIFA World Cup
      • Olympics
      • #
    • Videos
    • Entertainment
      • Music
      • Movies
      • Art & Culture
      • Bookends
      • #
    • Lifestyle
      • Page2
      • Food
      • Tuesday Style
      • Food Awards
      • JOL Takes Style Out
      • Design Week JA
      • Black Friday
      • #
    • All Woman
      • Home
      • Relationships
      • Features
      • Fashion
      • Fitness
      • Rights
      • Parenting
      • Advice
      • #
    • Obits
    • Classifieds
      • Employment
      • Property
      • Motor Vehicles
      • Place an Ad
      • Obituaries
    • More
      • Games
      • Elections
      • Jobs & Careers
      • Study Centre
      • Jnr Study Centre
      • Letters
      • Columns
      • Advertorial
      • Editorial
      • Supplements
      • Webinars
  • Home
  • News
    • International News
  • Latest
  • Business
    • Business Bites
  • Cartoon
  • Games
  • Food Awards
  • Health
  • Entertainment
    • Bookends
  • Regional
  • Sports
    • Sports
    • World Cup
    • World Champs
    • Olympics
  • Videos
  • Career & Education
  • Classifieds
  • All Woman
  • Environment
  • Webinars
  • More
    • Football
    • Elections
    • Letters
    • Advertorial
    • Columns
    • Editorial
    • Supplements
  • Epaper
  • Design Week
Opportunities for Jamaica as Chinese economic tremors shake the world
Xia Guoshun, charge d'affaires, Embassy of the People's Republic of China, greets PrimeMinister Portia Simpson Miller following the acceptance and formal handing over of theChinese Gardens to the Government and people of Jamaica.
Editorial
August 29, 2015

Opportunities for Jamaica as Chinese economic tremors shake the world

CHINA is such a large and important part of the global economy that what happens there has implications for the rest of the world. Following an unprecedented 30-year period of growth of over 10 per cent, there has been a deceleration of Chinese economic growth, which is beginning to adversely affect the rest of the world, starting in Asia, but manifested globally, particularly in commodity exporting countries in Africa and Latin America.

The Chinese economy is beginning a transition from export-led growth to a process in which domestic demand plays a greater role. This transition is accompanied by a slowing in the rate of economic growth, which is being mistakingly interpreted as the demise of the Chinese model and economy.

It is likely that economic growth will decline from the 10 per cent per annum trend line to average between five and eight per cent per annum in the immediate future. The International Monetary Fund (IMF) has described the process as China moving to a “new normal” of slower yet safer and more sustainable growth.

The authorities in China have recognised that its economy is caught in an interaction between some long-term structural problems and short cyclical factors. It has sought to cauterise the effects of speculative exuberance in its stock exchange and to counteract declines in international price competitiveness by exchange rate adjustment. China’s central bank has also cut its benchmark interest rate and allowed banks to lend more in an attempt turn around the slowing economic growth.

The outlook is difficult to predict because of the unique nature of China’s economy, whose performance has confounded economic pundits over the 30 years. Whatever happens will have an impact on the world economy. Hopefully the Chinese authorities will be able to stabilise the economy and maintain high growth rates because this has been one of the engines of economic growth for the global economy which is still in the doldrums.

Fortunately, the nascent growth in the United States appears to be consolidating with the continuation by the Federal Reserve’s policy of very low interest rates.

Oil prices have remained low and that is not affected by China’s demand for oil which has slowed in tandem with economic growth. There is plenty of supply capacity and there is the prospect of Iran’s resumption of more oil exports. This abatement in oil prices will ease the pressure on the exchange rate and help to keep inflation moderate.

The implications for Jamaica do not seem to be too serious at this time. Jamaica does not depend as heavily on the export commodities, and therefore slumping commodity prices should have minimal impact. Tourism will be largely unaffected because our two most important source countries, the US and Canada, are doing reasonably well. Similarly, remittances should be unaffected, although the United Kingdom economy continues to struggle.

The ability and willingness of the Government of China to fund construction projects in Jamaica should not be impaired by recent developments. The fluctuations in the Chinese stock market could prompt a switch by investors to direct foreign investment — a prospect Dr Peter Phillips might find worthy of investigation.

{"website":"website"}{"jamaica-observer":"Jamaica Observer"}
img img
0 Comments · Make a comment

ALSO ON JAMAICA OBSERVER

John Chin loses again in ATP Kingston 2 Challenge
Latest News, Sports
John Chin loses again in ATP Kingston 2 Challenge
August 24, 2026
Jamaica's lone competitor on day two of the ATP Kingston 2 Challenge lawn tennis competition, John Chin, lost a close battle with American teenager Be...
{"jamaica-observer":"Jamaica Observer"}
Chuck Fenda sets Germany ablaze at Turnpike Reggae Festival 2026
Entertainment, Latest News
Chuck Fenda sets Germany ablaze at Turnpike Reggae Festival 2026
August 24, 2026
Reggae star Chuck Fenda brought fire, fury and a formidable catalogue of hits to Germany as he delivered an electrifying performance before 7,000 fans...
{"jamaica-observer":"Jamaica Observer"}
Tastee to mark 60 years with free anniversary concert
Entertainment, Latest News
Tastee to mark 60 years with free anniversary concert
August 24, 2026
KINGSTON, Jamaica—Six decades after Tastee first introduced its now-iconic patty to Jamaicans, the beloved homegrown brand is inviting the nation to c...
{"jamaica-observer":"Jamaica Observer"}
11 years after decriminalisation, ganja use complicating mental health care
Latest News, News
11 years after decriminalisation, ganja use complicating mental health care
Cannabis features heavily among patients with psychosis and schizophrenia
DANA MALCOLM, Observer Online reporter, malcolmd@jamaicaobserver.com 
August 24, 2026
Eleven years after Jamaica decriminalised ganja, the use of the substance features heavily among patients presenting with psychosis and schizophrenia....
{"jamaica-observer":"Jamaica Observer"}
Australia’s top music charts ban AI songs
International News, Latest News
Australia’s top music charts ban AI songs
August 24, 2026
SYDNEY, Australia (AFP)—Music made by artificial intelligence will be banned from Australia's top charts under new guidelines aimed at protecting "the...
{"jamaica-observer":"Jamaica Observer"}
St James men charged with possession of criminal property
Latest News, News
St James men charged with possession of criminal property
August 24, 2026
KINGSTON, Jamaica—Two men have been charged with possession of criminal property following two separate incidents in St James last week. Charged are 3...
{"jamaica-observer":"Jamaica Observer"}
Chief justice cites AI as tool to enhance court operations
Latest News, News
Chief justice cites AI as tool to enhance court operations
August 24, 2026
KINGSTON, Jamaica—Chief Justice Bryan Sykes says artificial intelligence (AI) should not be viewed as a replacement for court officials but rather as ...
{"jamaica-observer":"Jamaica Observer"}
Honorary consul to Atlanta Elaine Grant-Bryan ‘humbled’ by OD recognition
Latest News, News
Honorary consul to Atlanta Elaine Grant-Bryan ‘humbled’ by OD recognition
Howard Campbell 
August 24, 2026
When Elaine Grant-Bryan settled in Atlanta in 1990, that city was long acknowledged as the mecca of black empowerment in the United States. She joined...
{"jamaica-observer":"Jamaica Observer"}
❮ ❯

Polls

HOUSE RULES

  1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper; email addresses will not be published.
  2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.
  3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.
  4. Please do not write in block capitals since this makes your comment hard to read.
  5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.
  6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.
  7. Lastly, read our Terms and Conditions and Privacy Policy

Recent Posts

Archives

Facebook
Twitter
Instagram
Tweets

Polls

Recent Posts

Archives

Logo Jamaica Observer
Breaking news from the premier Jamaican newspaper, the Jamaica Observer. Follow Jamaican news online for free and stay informed on what's happening in the Caribbean
Featured Tags
  • Editorial
  • Columns
  • Health
  • Auto
  • Business
  • Letters
  • Page2
  • Football
Categories
  • Business
  • Politics
  • Entertainment
  • Page2
  • Business
  • Politics
  • Entertainment
  • Page2
Ads
img
Jamaica Observer, © All Rights Reserved
  • Home
  • Contact Us
  • RSS Feeds
  • Feedback
  • Privacy Policy
  • Editorial Code of Conduct