China Govt Think Tank Warns Of Double-Dip Slowdown Risk

[GoFlyKiteNow]

China Govt Think Tank Warns Of Double-Dip Slowdown Risk
Sunday, November 15, 2009 - 22:20

BEIJING (MNI) - China risks a "double-dip" economic slowdown next year if the private sector remains unwilling to take over from the government in driving growth, a state think-tank warned in a report published Monday.

The State Information Center said that the economy is likely to grow at a respectable 8.5% in 2010, with consumer price inflation rising a modest 2.5%.

"The Chinese economic rebound is mainly because of the government stimulus plan and the recovery is neither solid nor balanced," the State Information Center said.

But the think tank, which is affiliated with the National Development and Reform Commission, the economic planning body, also outlined a scenario in which growth again falls below trend.

 

[longbow]

Lets hope that is not the case. As it is the Chinese stimulus is what is helping pull many regional economies out of a recession. Read that South Korea's growth, Australia's resource based economy and many other regional countries are being helped by the Chinese. In a global recession where supply exceeds demand, Gov is spender of last resort and the Chinese are the only ones with the money to do the spending. Even the US's stimulus spending depend on Chinese financing.

However a double dip is always possible. We can see the commerical property in the US begining to get hit.

China Govt Think Tank Warns Of Double-Dip Slowdown Risk
Sunday, November 15, 2009 - 22:20

BEIJING (MNI) - China risks a "double-dip" economic slowdown next year if the private sector remains unwilling to take over from the government in driving growth, a state think-tank warned in a report published Monday.

The State Information Center said that the economy is likely to grow at a respectable 8.5% in 2010, with consumer price inflation rising a modest 2.5%.

"The Chinese economic rebound is mainly because of the government stimulus plan and the recovery is neither solid nor balanced," the State Information Center said.

But the think tank, which is affiliated with the National Development and Reform Commission, the economic planning body, also outlined a scenario in which growth again falls below trend.

 

[antitrwatch]

will it happen to Singapore too?