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Old 23rd August 2007, 06:31 AM
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Economy to keep racing ahead despite uncertainties

China's economic growth may face uncertainties in the coming months. Whatever those uncertainties are, analysts agree the economy will continue its rapid growth.

China's gross domestic product (GDP) increased 11.5 percent in the first six months of the year, with investment, inflation and lending maintaining strong growth.

Economic growth in the second half of 2006 was lower than the first half, and therefore year-on-year growth in this year's second half should be stronger, said Liang Hong, chief economist of Goldman Sachs (Asia) in Hong Kong.

The country's GDP growth may reach 12.6 percent for the second half, while the whole-year figure could be 12.3 percent, Liang said......

http://www.chinadaily.com.cn/bizchin...nt_6037611.htm
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Old 23rd August 2007, 08:11 AM
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Re: Economy to keep racing ahead despite uncertainties

This goes without saying, when people start to ride motorbikes in the countryside instead of walking or bicycle, there will be improvement in productivity.

When people start using mobile phones on prepaid cards when previously the whole village relies on one phone, there will be improvement in productivity.

When people start using computers and the internet for the first time, there will be improvement in productivity.

The point is that China as a whole is starting from a low base.

For the worst case scenario, you can have birdflu spreading in the cities killing hundreds of thousands of people, and overall there will still be economic growth. :o

Last edited by touchring; 23rd August 2007 at 08:28 AM..
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