US Economist Says China’s Performance Impressive
US Economist Says China’s Performance Impressive

US Economist Says China’s Performance Impressive

US Economist Says China’s Performance Impressive

The performance of the Chinese economy has been very impressive since the global financial crisis, a US economist said in a recent interview with Xinhua. Since the fourth quarter of 2008, average quarterly real GDP growth in China has been 8.2% year on year, while the equivalent figures for the United States and eurozone are 1.4% and 0.4%, respectively, said Paul Sheard, executive vice president and chief economist of American financial information service provider, S&P Global.
China’s high growth in the wake of the 2008 financial crash reflected its high economic growth potential and the strong growth momentum helped by its full-fledged entry into the global economic trading system in 2001, but it also reflected the very effective policy response to the shock of the crisis, the expert said.
“China quickly mobilized fiscal and monetary policies on a large scale when the crisis hit the developed world and China’s major export markets. China successfully steered its economy away from reliance on external demand to more reliance on domestic demand, particularly infrastructure investment,” Sheard said.
The massive infrastructure investments by China served several purposes simultaneously: keeping the Chinese economy from negative effects of the crash, helping to correct unsustainable macroeconomic imbalances, and accelerating the accumulation of the urban and transportation infrastructure contributing to China’s continuing economic development.
However, China’s post-crisis credit-fueled investment in infrastructure and residential housing also leads to a build-up of debt and credit in the economy. In this context, China’s economic reforms are important.
“It is important that institutional and market-enhancing reforms continue to be implemented that create the right incentives for capital to be allocated efficiently, for economic enterprises to be well managed and for the necessary rebalancing of the economy to take place away from excessive reliance on investment and towards household consumption becoming the key driver of economic growth and rising living standards,” said Sheard.
China’s economy expanded 6.9% for the first half of 2017, with consumption and services, and new innovation-driven economic sectors taking up larger roles in the economy, data from the National Bureau of Statistics showed.
China’s economy has gone forward in a rapid pace since the financial crisis and has been a greatest contributor to the global economic growth.
The economist expected the US economy to continue to grow at a little above 2%, China in the mid-6% range, the eurozone and Britain at around 1.5%, and Japan at around 1%.

Short URL : https://goo.gl/xubz4F
  1. https://goo.gl/3msM9L
  • https://goo.gl/2jLknU
  • https://goo.gl/zNsxZA
  • https://goo.gl/2HLr1n
  • https://goo.gl/X928bn

You can also read ...

Malaysia Economy Set to Grow
Malaysia’s economy is set to grow this year with gross...
Growth is forecast at 2.2% in 2017, down from  a previous projection of 2.8%.
UAE’s real GDP growth will slow in 2017, owing to oil...
The high resolution MRI, CT, and sonogram images underpin advances in medical diagnosis.
The growth in labor productivity – real output per hour worked...
EU heavyweights France, Germany and Italy argue that there is growing evidence of discrimination, especially by state owned companies and a determined Chinese strategy to secure the most modern European technologies in key industrial sectors.
Both Brussels and Washington are taking steps to force China...
Based on the index  gas, fuels, water and housing, especially  sub-indexes, declined by 2.4% year on year in July.
Subdued demand due to cash shortages in Zimbabwe has resulted...
German Investor Morale Slumps
German investor confidence fell sharply in August, amid...
Pak Current A/C Deficit Widens
Pakistan posted a glaringly high current account deficit of $2...
The surge in European stocks pushed up the MSCI world equity index.
European stocks broke a three-day losing streak on Tuesday,...

Add new comment

Read our comment policy before posting your viewpoints

Enter the characters shown in the image.