From Lombard Street Research with some eye-popping charts and spot on in my book:
China’s economy has slowed sharply and this will have a significant impact on global trade and GDP. The authorities are likely to respond to this, mainly through targeted monetary and fiscal stimulus. But as they don’t want to compound the imbalances that have caused this slowdown, they will probably settle for significantly weaker growth than they achieved in the past. We continue to think China will struggle to meet a sustained 5% growth rate over the next few years.
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
