Mostly Economics

Prof Eswar Prasad on Chinese economy going forward:

China’s remarkable run of persistently high growth in recent decades is all the more stunning in light of the country’s low levels of financial and institutional development, state-dominated economy, and nondemocratic government. Notwithstanding the inefficient and risky growth model, the government has maneuvered the economy around various stresses without any major financial or economic crash. With a shrinking labor force and declining efficiency of investment, raising productivity growth is key to maintaining reasonable GDP growth. Unbalanced reforms, a schizophrenic approach to the role of the market versus the state, and strains in financial and property markets could result in significant volatility but a financial or economic collapse is not in the cards.

This entry was posted on April 20, 2023 at 5:16 pm and is filed under Academic research & research papers, Economics - macro, micro etc, Financial Markets/ Finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.