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A Chinese Lost Decade?

December 25th, 2017 · No Comments

  • 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.

Source: A Chinese Lost Decade? | Seeking Alpha

Tags: China