Great piece on China’s economic growth and how it will continue to grow for the foreseeable future. I don’t see any reason for a decline Chinese growth. China will be taking over the US as the world’s largest economy sooner than anyone thinks. They have lifted more people out of poverty in world history than any other nation. Credit should be given where it is due. Let us keep away from blind misconceptions and bias and admit the CHINA is a rising Giant.
Some recent media reports have seized on the fact that China’s GDP growth rate is now below eight percent. The biggest concern is that, without eight percent annual growth, China will not be able to continue creating the jobs needed by millions of migrant workers. Rising unemployment rates will in turn lead to social instability.
The big question for China: Is there a life after growth drops to 7.6 percent?Before answering, it is helpful to review some history. In 1993 the Chinese government set a goal of eight percent growth. Why eight percent, instead of seven or nine? Because that was the annual rate of growth needed for China to quadruple its 1980 GDP by the year 2000. Although there was no complex economic model behind the magic eight as the optimal rate of growth for the nation, it became China’s growth target for about two decades. Is there a good reason to think the sky is now falling only because China now grows at less than 8 percent?
- How Should China Respond to the Slowdown? (project-syndicate.org)
- Annualized GDP Growth Of 1%; Annualized US Debt Growth of 21% (margotswebnews.wordpress.com)
- Recession In Europe And Beyond: The Impact On The United States (seekingalpha.com)
- Inland Chinese cities do well on mid-year economic report card (wantchinatimes.com)
- IMF Turns Negative on China (247wallst.com)