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Message: Post olympic blues

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Post olympic blues

posted on Aug 25, 08 12:24PM

A lot of statistics out there showing post Olympics, the growth rate of China will slow down compared to previous 7 years. If history is any predictor of the future then China shall experience the same. Going forward the growth undoubtedly cannot be compared to the development that was required to be done in Beijing in order to have the Olympic games underway.

Growth will slow down compared to the last seven years. This not because China cannot maintain the growth, inflation makes growth unsustainable. China can well afford to continue the economic growth with huge treasury reserves. However recession looming in US, Europe and Japan, growth has to be based on Chinese internal consumption.

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