Why global market declined and how does it affect your loan approval process for salaried customers?

Global Market on Monday saw a drastic change and most of the economy of the entire world saw a deep decline. The global market declined and the main contributor for this economic slowdown is China. The carnage began with an 8.5% drop in China’s Shanghai Composite index. Following the suit, the markets in Japan, Korea and Australia followed the same.

Chinese Market Slowdown

For the past 25 years, the Chinese Economy has been a main part of the World Economy and has a significant contributor. For the past several years, Chinese Market has been impressive and has seen a growth of 7% to 8% annually. The export-oriented development strategy which put Chinese people to work, making products for international companies are one of the significant factors for the significant contribution in the world economy. But, with inherent limits, the country with high living standards, it is becoming harder to compete with other low-wage countries. Thus, the need is to diversification of the economy, and the need to produce more goods and services for domestic consumption rather than for export.

Thus, an internally driven growth is needed within the country, which is not possible owing to different reasons. Thus, for past some years, the slowdown in Chinese market can be seen, which is in fact, the primary reason for the slowdown and yesterday’s slump was an example of the really critical situation of China.