Sunday, 10 April 2016 00:00

Chart Of The Day: China’s Unsustainable Investment Growth

Rate this item
(0 votes)

I have opined in the past that expansionary monetary policies will do little for China and the economy needs gradual transformation from largely investment and production oriented economy to an increasingly consumption based economy.

The chart of the day shows investment as a percentage of GDP for China, Asian Tigers and the United States of America. Clearly, China’s investment as a percentage of GDP is at unsustainable levels and I see that gradually coming down in the next decade.

 

Investment As A Percentage Of GDP For China Asia And USA

 

The Asian Tigers include South Korea, Hong Kong, Taiwan, and Singapore when each was at China’s 2014 nominal per capita GDP level.

Read 616 times

Leave a comment

Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.