Monday, July 19, 2010

Rubini : Even China is showing signs of a slowdown

Even China is showing signs of a slowdown, owing to the government's attempts to control economic overheating. The slowdown in advanced economies, together with a weaker euro, will further dent Chinese growth, bringing its 11-per-cent-plus growth rate towards 7 per cent by the end of this year.
This is bad news for export growth in the rest of Asia and among commodity-rich countries, which increasingly rely on Chinese imports. An important victim will be Japan, where anaemic real income growth is depressing domestic demand and exports to China sustain what little growth there is. Japan also suffers from low potential growth, owing to a lack of structural reforms and weak and ineffective governments (four prime ministers in four years), a large stock of public debt, unfavourable demographic trends and a strong yen that gets stronger during bouts of global risk aversion.
in Today in Singapore.

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