Don’t Quote Me (On The Economy)

Related entries: Business Issues, Economy, General

Following the release of China’s first quarter growth figures (11.1 percent, as reported here) there has been surprise in many quarters at the continuing heat in the market. While the GDP debate has often focused on whether there will be a hard, soft of bumpy landing, Standard Charted have come up with a different view. Their China economist, Stephen Green, was quoted in the FT as saying:

    “This economy has not landed – it has refuelled in mid-flight and is flying higher again”.

So economists can have some fun with their analysis! And remember these are the same guys that came up with the idea that “China is a Robin Hood, Goldilocks and Superman economy” (translation: it is moving money from rich to poor; it should not be too hot or too cold; and is, like Superman “up up and away”).

So, will it land at all? Premier, Wen Jiabao certainly hopes so:

    “We need to prevent the economy from shifting from relatively fast growth to a state of overheating and to prevent big ups and downs”.

More policy action is certainly in the pipeline.

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