What is going on in China? China growth can be based on three factors: electricity consumption, volume of rail cargo, disbursement of bank loans. This type of simple model was developed after premier Li Keqiang stated economic growth was "man-made" and "for reference only". Well, if the focus is on these three factors we can say one thing for sure. The growth rate is going to be closer to 7% or lower than it will be to double digit numbers. Growth is at the lowest levels in 13 years.
Premier Li Keqiang is getting quite a reputation as a forecaster. (I guess if you control the economy, people will listen.) He is now talking about a "hand" that is attached to the state that needs to be returned to the market. He wants to cut bureaucracy, cut regulation and fight graft to hit 7% growth without the emphasis on state help. he is sounding like a republican, but his work is not going to be easy if you look at his index.
No comments:
Post a Comment