1/4
Renmin University's Liu Xiaoguang on Beijing's debt management, notes that "Local governments, as well as enterprises and households, are shifting focus to repairing balance sheets, which is obviously not conducive to economic recovery."
chinadaily.com.cn
Renmin University's Liu Xiaoguang on Beijing's debt management, notes that "Local governments, as well as enterprises and households, are shifting focus to repairing balance sheets, which is obviously not conducive to economic recovery."
chinadaily.com.cn
2/4
He is implicitly recognizing something most analysts have found surprisingly difficult to understand: past GDP growth associated with non-productive investment must be reversed in the future as Beijing decides, or is forced, to rein in debt.
He is implicitly recognizing something most analysts have found surprisingly difficult to understand: past GDP growth associated with non-productive investment must be reversed in the future as Beijing decides, or is forced, to rein in debt.
3/4
That is why future growth rates will be lower than most economists project (as they were in Japan, the USSR, Brazil and other similar cases). Much of what Xi Jinping once called "inflated" growth added to past reported GDP without adding to the real economy.
That is why future growth rates will be lower than most economists project (as they were in Japan, the USSR, Brazil and other similar cases). Much of what Xi Jinping once called "inflated" growth added to past reported GDP without adding to the real economy.
4/4
Even economists who now understand that China's GDP growth was overstated by the non-productive activity that boosted GDP without boosting real economic capacity don't understand that the gradual recognition of this "fake" growth must reduce future GDP growth.
Even economists who now understand that China's GDP growth was overstated by the non-productive activity that boosted GDP without boosting real economic capacity don't understand that the gradual recognition of this "fake" growth must reduce future GDP growth.
Loading suggestions...