The World Melts Down, China Grows

Defying the Economic Odds: The World Melts Down, China Grows

By Dilip Hiro, Tomdispatch.com. Posted May 4, 2009.

A new world order is emerging from the worst economic crisis since the Great Depression, with its center gravitating towards China.

In the midst of the worst economic crisis since the Great Depression, a new world order is emerging -- with its center gravitating towards China. The statistics speak for themselves. The International Monetary Fund (IMF) predicts the world's gross domestic product (GDP) will shrink by an alarming 1.3% this year. Yet, defying this global trend, China expects an annual economic growth rate of 6.5% to 8.5%. During the first quarter of 2009, the world's leading stock markets combined fell by 4.5%. In contrast, the Shanghai stock exchange index leapt by a whopping 38%. In March, car sales in China hit a record 1.1 million, surpassing the U.S. for the third month in a row.

"Despite its severe impact on China's economy," said Chinese President Hu Jintao, "the current financial crisis also creates opportunity for the country." [more]