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Efficiency Gains Could Keep China's Economy On Full Throttle Sep 11
Standard & Poors, September 2011
Is China's rapid economic growth coming to an end after three decades of reform and openness? Some commentators certainly read the signs that way. They argue that China's potential to generate easy productivity gains through heavy capital investments is diminishing as average annual income breaks above US$4,000. The country's significant reliance on export-led growth offers few reasons for optimism. Developed economies are unlikely to buy enough Chinese exports in the next few years to justify China's exceptionally high investment rate. If the investment rate falls, the country's economic growth could slow down markedly. (Watch the related podcast titled, "Why China's Economy Can Still Power Ahead," dated Sept. 21, 2011.) The low-hanging fruits may have gone, but Standard & Poor's Ratings...
Companies mentioned in this report are: China (People's Republic of )
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Research Type: Commentary
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China (People's Republic of )