Economic Growth of China to Slow Down

China’s Slow Economic Growth

First Published Date : July 25, 2010 ADawnJournal.com

China over the past few years has been an amazing success story with a massive amount of growth over the past decade. The country of China is expected to overtake the United States as the most dominant economic power on the planet, but that may not come as soon as many forecasters thought. With the recession hitting the world hard, Citigroup Inc. has lowered the forecast for China’s economic expansion for the rest of 2010. China is currently the third-largest economy in the world, right after the United States and Japan, but fewer purchases by consumers in those countries have caused less goods being exported out of China.

China showed a slowing in its second quarter, which resulted in the forecast by Citigroup being lowered for the third and fourth quarters of 2010. The gross domestic product of China was originally forecasted to be 10.5 percent for 2010, but that has been lowered to 9.5 percent. This resulted in the biggest one-month reduction in the outlook of the country’s economy since 2001. In addition, the growth projections for 2011 were lowered, as was the economic forecast of the major trading partners of the United States and China.

The world’s economic growth is expected to slow due to China trying to curb property prices, Europe’s debt issues and the economic outlook of the United States. In 2011, it is forecast that China will have its economy grow by about 8.8 percent, which is half a percent lower than the previous forecast. One good thing is that the country will see its inflation rate go down next year, falling from 4.6 percent this year to 3.6 percent next year.

In the second quarter of 2010, China only had a growth of 10.3 percent, which was lower than the 11.9 percent increase seen in the first quarter. The inflation rate fell from 3.1 percent in May down to 2.9 percent in June. In addition, property prices around the country fell by .1 percent in about 70 Chinese cities, which ended almost a year and a half in growth for property prices in the country. Citigroup was not the only bank to lower the rate of increase for China. Deutsche Bank AG forecasted that China would have a growth rate of 8.6 percent in 2011, down from the bank’s forecasted growth rate for 2010 of 9.6 percent.

Does this mean that the economy for China is going to reverse? Not in the least. China is still a force to be reckoned with around the world as its economy continues to grow at an amazing rate. No other country on Earth is coming close to the growth rate of China these days and even if China has seen a decline, it is still growing during a major recession. As the world moves out of the recession, China again will see a major growth for the country’s economy and that will eventually push it past the economy of the United States midway through the 21st century.

Commercial Real Estate Loans in Canada

Commercial Property Loans in Canada

First Published Date : July 28, 2010 ADawnJournal.com

The commercial property market in any country plays a major part in its economy, being the point where retail and investment banking meet. There is a lot of encouragement given by any government in the issue of keeping commercial properties running and finding a way for them to keep up with debt repayments so as to avoid the worrying eventuality of a commercial property closing down – thus depriving the economy of the tax dollars from the property and business itself, and the banks of important money from mortgage repayments. It is a lose-lose-lose situation when one takes into account the owner of the business going bust. Yet there is a very real situation emerging at present which suggests that commercial property loans will need to be looked at very closely in the coming year.

Commercial loans are unlike residential mortgages in that the latter are self-amortizing, and as long as the resident has a well-chosen mortgage their payments will shrink in real terms as the life of the mortgage runs down. At a given point with a commercial loan, the payments may well begin to increase, having been agreed on the basis that profits from business will rise year-on-year. Depending on the nature of the loan, the case may well be that the borrower needs to look at refinancing the loan or repaying it in full. There are billions of dollars’ worth of commercial property loan coming due for refinancing or repayment this year – and several companies who are in no position to meet either of these conditions.

At present, the government and the banks are working together to find the best way of ensuring that the mortgage deals hanging in the balance are restructured in a way that leaves no-one too seriously out of pocket. Although the properties which are bought with commercial real estate loans represent an asset that can be repossessed and re-sold, there is still a large level of reluctance to borrow among the general and business public, raising the spectre of commercial properties remaining vacant for the time being. This leaves the banks with assets of limited worth, the government with a reduced level of tax income from these sources, and civic authorities with the problem of empty properties on their high streets – not encouraging for trade, and considered to be injurious to civic pride and all the things which flow from that.

As we were in a recession with a global reach, there are no short cuts where business and commercial real estate financing is concerned. Foreign investment is no more likely than domestic, as Canada is in better shape than most economies worldwide. In order to keep businesses open and trading, some level of agreement needs to be made between the government and private finance so that the best outcome for everyone is achievable. Anyone looking for a commercial real estate loan at the present time may well be in an advantageous position, as there will be breaks available while the government seeks to encourage lending. Everyone is holding their breath at the moment waiting to see how this recession has had its play coming out of recession. Some proactive conduct on the businessperson’s part at this moment might well be sensible.

Kuala Lumpur Full-Day City Tour – Part 4 Batu Caves Tour

Malaysia Travel Blog: Discover Amazing Kuala Lumpur City Tour

Kuala Lumpur Travel Blog: Part 7

Batu Caves Tour

Batu Caves was only 20-minute drive from Kuala Lumpur. I was again mesmerized by the greeneries everywhere in Malaysia. Once we left downtown Kuala Lumpur, the scenery changed from skyscrapers to suburbs and mountains.Batu Caves is home to a huge 154-foot (47-meter) Hindu gold Lord Murugan statue on top of the mountains. The statue is gold painted and can be seen from afar.

Also, there are 4 four limestone caves: Temple Cave, Dark Cave, Cave Villa, and Ramayana Cave. The UNESCO World Heritage Site is a very popular spot for tourists, pilgrims, and rock climbers.

I saw lots of flower shops at the entrance. Religious people buy flowers for gods and goddesses. To reach the top, I had to climb a steep flight of 272 steps. I thought of not going up, but ultimately decided to conquer these steep steps. The guide stayed on the ground.

As I was climbing up, the panoramic views of Kuala Lumpur were changing step by step due to the elevation level. It was intense, hard work, so I took rest after every few steps and started again. 

There were lots of long-tailed gray macaque monkeys all over. Tourists were feeding them, and they were not afraid of humans. Sometimes they were climbing on tourists’ heads or shoulders.

Once I reached the top, a spectacular vista of Kuala Lumpur reaching far away opened up in front of my eyes. At the base, the other caves and entrances could be seen. I saw some Hindu temple and shrines as well.

Climbing down the stairs was not difficult. I was surprised that I was able to make it and didn’t feel any pain in my legs. Tomorrow I will another short tour and I’ll be leaving Malaysia the day after.

How to Use Your Credit Card Balance Transfer To Your Advantage

Credit Card Balance Transfer

First Published Date : July 31, 2010 ADawnJournal.com

Credit card balance transfer is a tool used by card companies to entice you to start using their cards in hopes that you will continue using their cards even after the balance transfer promotion is over – regardless of whether you pay off those balances you transferred or not. If you know a few simple techniques, you will be able to use credit card balance transfer to your advantage. Let’s go over a few basics on credit card balance transfer you need to know.

In Canada, you will usually get notifications of balance transfer offers in the mail. It is also a good idea to keep an eye on credit card company websites. Also, you can call their customer support line occasionally to check if any balance transfer promotion is going on.

Once you have a balance transfer promotion offer, read the terms and conditions carefully. Here are some tips to help you to get maximum benefit from a balance transfer:

How long the balance transfer will last – Pay attention to the start and end date of the balance transfer offer. Do not start before this date, even a single day ahead can make you pay very high interest. Likewise, do not stretch beyond the last date. Use Google Calendar, a reminder on your cell phone, or any other reminder to remind you at least 3 business days ahead of the actual end date so you will have enough time to pay before the deadline.

Avoid balance transfer fees – In Canada, usually these types of charges are not seen. However, you still need to make sure that it does not exist.

Write Cheques – If you get the offer in the mail, it usually includes customized cheques only for balance transfer purposes. You can use these cheques to pay off other high-balance cards, or you can deposit cash to your own account (using these cheques) and then pay off other credit cards from your bank account. Using these specialized cheques as cash should be written in the terms and conditions. Make sure that you will not be charged high interest for paying other credit cards by taking cash. Call customer service if you need to be sure.

Transfer by calling the customer service line – You can also transfer by calling the customer service line of the card that is offering the balance transfer. Sometimes, you will only be able to transfer to other credit cards; sometimes you will have the option to take cash in your bank account (linked to your credit card) and then you will be able to pay to other credit cards from your own bank account. Ask customer service which options are available and pick the one that is most convenient for you.

Do not pass your deadline – As I mentioned before, under no circumstances should you delay paying off the balances you used for those promotional months. Even a single day delay can make you pay additional fees and high-interest (instead of low interest) penalty and the whole purpose of transferring your balance will be forfeited. So avoid this at any cost.

More than one offer – Sometimes, you will get a balance transfer offer from more than one company. Use your judgment to pick the best offer. Usually, the lowest rate with the longer time-period offers the best value. However, a little higher rate with a longer term than a lower rate with a shorter term may be a better one to pick.

A lot of us decide not to utilize credit card balance transfer because of the hassle and steps involved with it. However, these few steps and a little hassle can save you some money. And it’s never wrong to save a few bucks here and there – it all adds up.

India’s Economy and Standard of Living

The Standard Of Living in India

First Published Date : August 7, 2010 ADawnJournal.com

India is a developing country that is on the way to becoming developed. Its economy is growing rapidly and that is helping to raise the standard of living. This is important for investors to know because the faster that India grows its standard of living, the more people within the country who will have buying power. The more buying power, the more money flowing through the country.

The current purchasing price parity adjusted gross domestic product in India is $3,176, which is still quite low. However, India has a growth rate of roughly eight percent per year, which means that it is growing quite fastest and it has what may be the largest middle class in the world. The current number of citizens in the Indian middle class stands at 300 million; however this is by Indian standards, which is lower than the standards set in Europe and the United States. However, the growing middle class means that by 2015, the PPP-Adjusted GDP will be six percent higher than it is now. The level of poverty has also gone down in India over the past few years, currently sitting at 22 percent of Indians living under the poverty line. This number used to be much higher and India is hoping to eradicate poverty by the year 2020.

Rural areas have a much higher level of poverty when compared with the cities and currently, 24.3 percent of the population lives on $1 per day, which is down from levels seen in 1981, which were as high as 42 percent.

India has seen the same type of effect on its economy as China has seen. As the country begins to build more and more infrastructure, export more and import more, the level of money for each individual then goes up. This means that people are able to purchase more, which raises their standard of living and the standard of living for the people they buy from. Current estimates have India increasing its middle class by 100 million in the next decade given how fast the economy is going.

It should be noted that India did see a slowdown during the recession that gripped the world in 2009-10, but that is beginning to change and once again the country is moving forward. However, during that recession, the country still had a very high growth rate for its economy.

In addition, the infrastructure of the country is also improving. There are roughly one million broadband lines in India, with 76 percent of the lines available via DSL and the rest available through cable modems. For water infrastructure, it is much worse for the country with no city within India having a continuous water supply, with the longest solid duration of water only being 12 hours a day. Some cities only had water for half an hour a day.

Even with some of these problems, India is working to fix them and make the country a world leader as a developed country. As the years go by, things are looking up for this highly populated country.