Chinese urbanisation done and dusted

Australia’s great China apologist, Geoff Raby, is back:

And herein is probably the key to China’s continued secular growth. Urbanisation on most measures is only about 65 per cent. The developed country average is about 84 per cent. Nearly a quarter of China’s 1.4 billion population is still to find its way into these urban areas, offsetting the effects of population decline and secular stagnation.

This will, of course, continue to drive demand for Australia’s resources and energy. Lardy predicts that China will contribute about 30 per cent of world GDP growth this year, and this will continue to expand. Its economic weight, especially in Asia, will continue to grow and eclipse that of the US.

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About the author

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.