Thursday 6 September 2007

Bumpy road ahead for growth but how big are the bumps?

Today's Independent has an article by Hamish McRae (writing from China) on the prospects for continued economic growth. Although the environment is barely touched on in this article (see previous post) it appears that even without this there are bumps in the road ahead but that they may be smoother than many believe (he should read the Economy article below).

A well balanced and optimistic story that gives us some hope that China will continue to develop without a major catastrophe.

Hamish McRae: When you look at China all you see is growth, but a bumpy road lies ahead

The article concludes:
But, having spent a week now travelling round China, it is hard not to believe that the economy has so much momentum that it will be able to push through the next downturn in reasonable shape. Some way in the future, China will become a normal economy. But, as the leaders of these growth companies gather in Dalian, all they see is growth. You can understand investors, particularly inexperienced ones, thinking pretty much the same way.


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