3 ms·
China is likely going to have one or more of the following going on: 1) Less GDP growth than the 6.5% prediction. 2) Less consumption growth as a fraction of
by bzbarsky 10y ago
China is likely going to have one or more of the following going on:
1) Less GDP growth than the 6.5% prediction.
2) Less consumption growth as a fraction of GDP (hence deepening imbalances and higher corporate debt levels).
3) Massive wealth/income transfers to the household sector to allow for a rise in consumption.
You're right that without #3 it's pretty unlikely that consumption will rise as much as that article claims.