While the Chinese economy continues to slowdown, policymakers in Beijing are faced with the dilemma of how to rebalance an economy that till now has relied heavily on investment.Here is a direct link.
“During the last crisis, we had China, and most of the other developing countries also had high growth rates. But now short term, you cannot expect a stimulus from China, so there’s no one to pull the world out of the next slump.” — Peter Loscher, Siemens CEO, April 2013
Also see Roubini’s latest update on the new normal, much subdued emerging market growth rates now that we are in a post-consumer credit bubble world. Excessive debt drove global growth up together, and now deleveraging and an aging population is driving it down: Trouble in Emerging-Markets Paradise.
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