This, so far, is a interesting read. It is a July 2012 staff report from the IMF detailing their view on the Chinese economy and the outlook for continued growth. Some quick takeaways....
- The economy is heading for a soft landing.
- Economic growth has been focused primarily on capital investment funded via debt.
- This has led to a situation of high excess capacity or said the other way, low capacity utilization.
- However, the Chinese authority should continue to ficus on shifting their focus on achieving more domestic spending. (Interesting considering a previous story I posted stating that is far more likely that additional Chinese stimulus will be focused on the Chinese consumer)
- Chinese authorities have ample fiscal levers to pull to engineer a soft landing in the economy.
- The economy is heading for a soft landing.
- Economic growth has been focused primarily on capital investment funded via debt.
- This has led to a situation of high excess capacity or said the other way, low capacity utilization.
- However, the Chinese authority should continue to ficus on shifting their focus on achieving more domestic spending. (Interesting considering a previous story I posted stating that is far more likely that additional Chinese stimulus will be focused on the Chinese consumer)
- Chinese authorities have ample fiscal levers to pull to engineer a soft landing in the economy.
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