In 2017 growth in China’s GDP is expected to “cool” to 6.2%. The Chief economist at the OECD says that this years slowdown in trade, particularly with China, will lead to lower economic global growth. She blames China”s economic slowdown as being at the heart of this.
The only problem with this view is that this years growth in the Chinese economy will come in at 6.9%. Since when, one may ask, has growth of 6.9% amounted to a slowdown in any economy. It may not have been expanding at its previous hectic rate but a rise of 6.9% can hardly be called a slowdown.
Germany, the UK, Japan and the USA would not believe their luck, if they could produce annual growth of even half the Chinese level. Indeed were they to do so half the financial journalists and even more of the worlds economists, led by the Chief one at the OECD, would no doubt be screaming about the dangers of overheating economies and the risks of rampant inflation.
Who are these jobsworthies who delight in making fools of themselves with inane and illogical comments. Well they are the people who have most influence on economic policies all over the world.
The UK with meagre growth of 2.4% is already threatening higher interest rates next month in order to reduce demand and avoid the creation of too many new jobs leading to too much inflation. It should not make sense for the OECD to blame Chinas 6.9% growth for the worlds problems but unfortunately for you and me, it is blind to everything but the location of the next gravy train.
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