As you may have heard, our new World Bank Chief Economist is Chinese, so it was with interest that I watched a short interview of him on Bloomberg about China's economy:
One key point that I picked up is that he also remains optimistic about China's growth prospects in 2008. He answered a question about China after the Olympics, but in his answer he expressed the confidence in China's domestic economy more generally. World growth prospects have come down as the economies of the US and Europe are starting to feel the impact of the financial turmoil triggered by the sub prime problems in the US.
This will have an impact on China's exports and investment in the tradable sector. However, as Justin mentioned, China's domestic economy has pretty robust growth momentum at the moment and this will help support China's overall growth. And, given China's increasing weight in the world economy, this in turn should also help the world economy.