5 Apr 2016
China’s Economic Performance: A History
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
We agree with much of what the author has written in the attached article but to think that China is not going to have a misstep in the first half of this century which at best will lead to a recession or at worst a depression is wishful.
The fixed asset investment or overbuilding leading to unoccupied new buildings is not just in some provinces, it has reached epidemic proportions.
What is clear from analysts returning from China is that China has built ahead of demand, has amassed trillions of dollars of debt to these property developers and has an aging working population.
This all points to only one conclusion and that is a China slowdown resulting in a global recession or at worst a global depression but just like the United States and its US$19 trillion plus in National Debt, China is an economic power and can keep patching over the financial trouble for years to come.
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