LITTLE TROUBLE IN BIG CHINA: ASIAN SLOWDOWN NO CAUSE FOR CONCERN - EXPERT
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Little Trouble in Big China: Asian Slowdown No Cause for Concern – Expert © REUTERS/ China Daily
09:06 13.09.2015Get short URL
http://sputniknews.com/analysis/20150913/1026932061.html
According to one Brazilian economist, China’s economic slowdown is merely a result of a structural change in the country’s development model.
The recent deceleration in China isn’t the prelude to an Asian economic meltdown, but rather the result of the Chinese authorities working to implement further structural changes, Livio Ribeiro of the Getulio Vargas Foundation’s Brazilian Institute of Economics (FGV/IBRE) said on Friday, as cited by the Chinese news agency Xinhua.
According to the Brazilian economist, a combination of factors continues to impact the rise in credit and indebtedness, dating back to 2008 when the Chinese authorities adopted countercyclical measures in order to counteract the effects of the financial crisis.
China is jettisoning its current “developing economy” model of promoting investment and emphasizing exports, and adopting a more “developed economy” model in which domestic consumption and the service sector play a bigger role. Recently, the transition has suppressed the Chinese economy’s rapid growth rate.
“I am not concerned with the deceleration of the economy. I would be more concerned if the Chinese government tried to achieve a higher short-term growth rate at any cost,” Ribeiro said.
The economist assures that the changes will win the country a more solid position in the global arena.
“In terms of absorption of goods and maybe even services, China is a more relevant player now than it was in the beginning of the 2000s,” he claimed.
“So one must look at the deceleration figures with care, because those figures are not the only important information,” he added.
Ribeiro estimates that the Celestial Kingdom’s growth rate will fall to a level of 6.0 to 6.2 percent by the end of 2020, but sees no problem for the economy itself if this is the case.
In the first and second quarters of 2015, China’s GDP was seven percent, a record low for the past six years. According to statistics for July and August, China’s growth is still slowing, despite a decrease in interest rates and other government measures to stimulate the economy.
theunhivedmind
Have you all noticed how the mainstream media keeps trying to make out that China is the cause of any financial crisis? Well ask yourself why China would have a downturn in their economy? Depressed oil prices, EU sanctions on Russia and the EU economic crisis. Europe is in a major downturn within this global depression and so Europe isn’t buying products. Shipping for trade has dropped in price as less products are being shipped, just take a look at indicators like the Baltic Dry Index. So if no one is buying products and all those products are made in China then what will happen to China? But who’s the cause of the Eurocrisis such as the Greek issue? New Venice. Who’s putting sanctions on Russia and who coup’d Ukraine? New Venice. Who decided the low pricing of oil? New Venice. So believe me none of this has anything to do with China and on top of all that you have to understand that China was attacked with economic warfare by the West. There are two areas to the Chinese economy, one which is more internal and the other which is exposed to international economic warfare. The internal economic model has no problems whatsoever. The economic warfare was done in an attempt to hinder the Yuan from joining the SDR as well as to promote financial distrust in China and create a patsy for any negatives purposely caused in the Western economy in an attempt to hinder any interest rate hikes which may blow up the West’s $1.7 quadrillion derivatives bubble which really needs to be ring fenced out using Glass Steagall.
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