- The Chinese economy is facing three secular headwinds that conspire to slow its economic growth considerably.
- Demographics are turning from a tailwind to a headwind and diminishing returns of the credit led boom have already set in.
- The necessary deleveraging process isn’t likely to produce a financial implosion, but it will slow growth significantly and fiscal policy is unlikely to be able to counter this.
- The country is making a large effort to jump up the value chain, which could at least in part provide a counter to these headwinds.
A Chinese Lost Decade?
December 25th, 2017 · No Comments