China's economic reforms have a long way to go
As you were, apparently. China’s growth in 2013 was precisely the same as 2012, at 7.7 per cent.
The rate cooled slightly in the fourth quarter, but nothing dramatic or unexpected. So can we breathe easier over the prospects for world’s second largest economy? Sadly not. Beijing pumped up the economy last year with a mini investment splurge.
That was good for the gross domestic product numbers but bad for the economic re-balancing that everyone — from the Communist Party down — now accepts needs to take place in China.
The country is still over-investing and under-consuming. And credit is still flowing at a dangerous rate. Total debt in the economy has shot above 200 per cent of GDP. The financial system is fragile, with banks sitting on mountains of bad loans.
Beijing knows what it needs to do to make its growth sustainable. But the question remains: can it overcome the plethora of powerful vested interests that are profiting handsomely from the status quo?
The latest figures underscore what a long march lies ahead for Beijing’s reformers.
- 3 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
- 4 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 5 Isis publicly behead man in Syrian town square for 'insulting Allah' as he screams for help
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Michelle Obama highlights harsh restrictions faced by Saudi women after meeting King Salman without wearing a headscarf
Amal Clooney gives excellent response to fashion question at European Court of Human Rights
Sir David Attenborough interview: The one question about life that still baffles him
Isis publicly behead man in Syrian town square for 'insulting Allah' as he screams for help
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...
Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...