Interview by Project M,
First published, 6/11/2013
With opinions on the future growth of its economy divided and past performance probably not indicative of results to come, China needs to change its economic model – or face danger, according to economist George Magnus.
China’s economic machinery has stepped off the gas, and its recent double-figured annual growth rates today seem unattainable.
Yet, the latest Hongkong and Shanghai Banking Corporation (HSBC) Global Connections Report on China (February 2013) forecasts the economy gathering pace: “Chinese exports will increasingly head to rapidly growing markets in developing economies, as the industrialized nations remain subdued.” The report sees a shift to more sophisticated industries, such as the chemical sector, by 2030.
By contrast, economist George Magnus, author of The Age of Aging: How Demographics are Changing the Global Economy and Our World (Wiley, 2009), believes China is on the road to becoming a ‘normal’ country, and will face conventional and traditional economic issues and challenges that could hog-tie further economic growth. The man widely acknowledged with having identified the trigger points leading to the 2008 financial crisis suggests significant changes to China’s economic model are needed to retain highs and stabilize growth. “China requires extensive political reform, more-robust institutions and a tilt in the role of the state towards supporting enterprise.“more”:
