The China's economic growth is
expected to decelerate up to 4 percent per year between 2020 — 2025 below
widespread expectations of a steady 7 percent to 8 percent growth over next
decade, business research group predicted.
Conference Board forecast said
that that China will endure rockier than expected transition from its fast
growth based on the exports and massive investment in the factories and real
estate to slower but steadier economy based on the increased spending by the Chinese
consumers.
"This adjustment process will necessarily be painful," the report warned. "The full transition of China's economic growth model is likely to be a long slog."
The Chinese officials acknowledged
the transition that will require tough choices, this choices includes reducing the
government loans to inefficient but politically connected companies. They have
been slow to act, said by the Conference Board. "China's leaders have forestalled
needed structural adjustments" by rolling out the stimulus
measures whenever economy starts to sputter.
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