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Optimism about China's growth

Louis Kuijs's picture

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.

Comments

Submitted by Anonymous on
i don't know that i've ever seen a bank chief economist so plainly stand by his country's "party line" on its own economic growth. granted, he is chinese; but it's reasonable to expect some impartiality.

Submitted by Changchun on
That's not becasue his 'party line' or he is Chinese, but because of Chinese Confidence. You can just wait and see if you do not believe it.

How subjective is confidence on China? Thanks to both for your comments. Actually, Justin Lin will only be WB Chief Economist in May (my blog entry was confusing about that). In the meantime, as an influential policy advisor in China, it is not surprising that his views on China's growth prospects are quite similar from others in Beijing. In the meantime, while we will see what happens this year, as Changchun says, so far most people in and on China remain pretty bullish on China's domestic economy. This includes not just policy makers, but also the private sector and outside observers. We at the WB are among those who share this optimism, as witnessed by http://eapblog.worldbank.org/content/is-china-de-linking-from-the-us-economy our judgement in our recent Quarterly Update.

Submitted by Liu Chenjie on
support Justin's opinion, and China's government should pay more attention on income inequity and regional growth disvergence, which will be benefitial for the long run robust growth in China Louis' fan

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