In the face of the global economic slowdown, China has continued to be one of the few countries in the world to show continuing economic growth and the freight forwarding and freight transport sector operating in China has benefited as a result. The leading American analytical service HIS Global Insight has forecast that in 2011 China will rank first in the world in industrial production, overtaking the United States.This will knock the United States out of the leadership position it has held for the past 110 years! This spectacular achievement by the Chinese economy is one to be celebrated by the freight services industry as it is a milestone in the growth of international freight from China and of course this success story is one which benefits many shipping companies and freight fowarders.
This exciting milestone is being encountered in the context of some concern as in the last months of 2010 there was fear about the economy in China overheating as a result of the economic stimulus introduced by the government as a response to the crisis in 2008. This is because growth of GDP in the last quarter of 2010 was above the average GDP growth of 9.7% per year over the last 30 years. Although inflation stayed at the average rate of 4.6% consumer price increases,This has raised some fears from investors in China regarding prospects for 2011 (or the Year of the Rabbit)
However, there is no need to worry about the economy overheating as there will be a slowdown in construction in 2011 as some key infrastructure stimulus projects reach completion. So it is most likely that the economy will continue to be robust and the shipping company and freight company have no need to fear the possible impact of monetary tightening as an attempt to control inflation in an overheated economy.