Tuesday, January 17, 2012

China's Growth in Perspective

Credit Writedowns highlights Goldman Sachs Asset Management Jim O'Neill's views on the latest 9.2% Chinese GDP growth rate:
"It’s a bit stronger than I thought as well, actually. It is a bit of a blow for the hard landing guys, given inflation has come down so much as well. And policy makers are moving away from restraints and flirting with some sort of stimulus. If I was a hard landing guy, I would not be feeling very excited this morning."
I personally question the sustainability of an economy that has grown to be such a large part of the global economy, yet still relies so heavily on exports (and growing imbalances), as well as central planning (i.e. misallocated capital), but the below charts clearly show the (rather epic) growth China has seen over the past 40+ years.

Source: Wikipedia