Goldman Sachs downgrade growth rate expectations for China
Goldman Sachs downgrade growth rate expectations for China. This morning they (Goldman Sachs) chopped their growth outlook for the Chinese economy between 2015 and 2017. Instead of GDP growth of 7.6% in 2015, Goldman economists now see growth of 7.1%, falling to 6.7% by 2017. Goldman kept its 2014 target of 7.3% GDP growth intact. Some of the reasons contributing to the downgrade are 1) slower labour force and demographic growth - the aftershock of China's remarkable birthrate decline due to the one-child policy. 2) Reduced rates of productivity growth related to the fact that China has already closed a lot of the productivity gap with more developed countries. 3) Recent growth is likely to have been supercharged by debt which is unlikely to be sustainable. The full article is available via Quartz: (VIEW LINK)
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