Given the importance of the Chinese economy to world economic growth, it is encouraging to see growth estimates raised. This has just happened with the World Bank’s estimate, which had been at 6.5% since March and has been hiked to 7.2%.
The macro economist for the Bank’s China office, Louis Kuijs, has a blog that might interest you. The most recent posting concerns how China has been able to maintain a relatively high growth rate (the highest of any major economy) despite a sharp decline in exports, which had been driving the economy in recent years.
The key seems to have been their stimulus efforts, led by government led investment. But is the higher growth sustainable for the next couple years in the absence of higher growth rates for the rest of the world?
You may read the blog at: