The Good News for China
Elizabeth Dickenson, Wed, 3.18.2009 - 9:03am
The World Bank published its quarterly update on China today, and the news is mixed -- but much better than what most countries are hearing. In summary:
While China's real economy has been hit hard by the global crisis, it is still holding up."
The bank predicts a growth rate of 6.5 percent -- lower than the "magic" 8 percent that mythically promises to prevent social uproar.
But while the news is not all good, why is no one noticing that the silver lining is, well, gold? China's banks are "largely unscathed," the report finds. Says the World Bank country director for China, David Dollar:
China is a relative bright spot in an otherwise gloomy global economy...Shifting China's output from exports to domestic needs helps to provide immediate stimulus while laying the foundation for more sustainable growth in the future.”
Given the brutal global context, sounds like victory for China to me.
And for a direct link to the inside of David Dollar's head, check out his World Bank blog here. It is so cool that the World Bank allows and promotes their senior staff to write blogs and interact with commentators.A selection of his recent posts:
- Reading tea leaves for signs of China's recovery
- Discussing China's new growth model: the role of consumption
- Mongolia: Stretching your legs as far as the blanket allows
- China’s 4th quarter GDP: glass half full?
- Considering China's options in weakening global economy
- China’s economic year of living dangerously
- China’s reform: 'Change the system, open the door'
- 30 years after China’s reform, students have more opportunities
- On exchange rates, think multilaterally
- How can China use its foreign reserves to help?
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