REVIEW & OUTLOOK|MAY 25, 2011
China's Growth Risks
Rising inflation and an opaque financial system, among others.
The Chinese economy is coming in for some sort of landing, and everyone is speculating whether it will be hard or soft. After HSBC on Monday released a purchasing managers index barely in positive territory, Goldman Sachs yesterday lowered its growth forecast for the year to 9.4% from 10%. But the determining factor in the hard vs. soft debate, and one reason global markets have fallen out of bed this week, is that Chinese inflation continues to accelerate. Goldman predicts an annual rate of 5.6% in June, up from 5.3% in April.
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Showing posts with label Review. Show all posts
Wednesday, May 25, 2011
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