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China Economy Will Slow, Hurt Commodities, Faber Says
February 11, 2010, 05:18 AM EST
By Shiyin Chen and Bernard Lo
Feb. 11 (Bloomberg) -- China’s economy will slow down “meaningfully” and may even be at risk of a “crash” because of the nation’s excess capacity and as loan growth slows, investor Marc Faber said.
China’s fragile economy may undermine industrial commodities in the “near term,” the publisher of the Gloom, Boom and Doom report said.
Gross domestic product expanded 10.7 percent in China last quarter from a year earlier, the fastest pace since 2007. Lending in January exceeded the total for the previous three months while property prices climbed the most in 21 months, even after the central bank raised banks’ reserve requirements last month, reports released today show.
“The economy, for sure, will slow down meaningfully this year,” Faber said in an interview with Bloomberg Television in Hong Kong.
“It has the potential to crash because of the overcapacities that have developed, and when loan growth slows down, we don’t know how the economy will react.”
.
February 11, 2010, 05:18 AM EST
By Shiyin Chen and Bernard Lo
Feb. 11 (Bloomberg) -- China’s economy will slow down “meaningfully” and may even be at risk of a “crash” because of the nation’s excess capacity and as loan growth slows, investor Marc Faber said.
China’s fragile economy may undermine industrial commodities in the “near term,” the publisher of the Gloom, Boom and Doom report said.
Gross domestic product expanded 10.7 percent in China last quarter from a year earlier, the fastest pace since 2007. Lending in January exceeded the total for the previous three months while property prices climbed the most in 21 months, even after the central bank raised banks’ reserve requirements last month, reports released today show.
“The economy, for sure, will slow down meaningfully this year,” Faber said in an interview with Bloomberg Television in Hong Kong.
“It has the potential to crash because of the overcapacities that have developed, and when loan growth slows down, we don’t know how the economy will react.”
.
