Ratings agencies don’t get much right but this report is spot on and ahead of the curve, via S&P:
– After four golden decades, China faces an inescapable slowdown due to demographics, deleveraging, rebalancing, and convergence. This is natural and mostly healthy.
– Productivity will set the pace of China’s slowdown and will depend on the ability to acquire, create, and deploy technology. Reform unleashing markets will be key.
The full text of this article is available to MacroBusiness subscribers
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.
