As China’s GDP Slows, Will Reform Be Sacrificed? – Bloomberg Businessweek 07-12-13

Salient to Investors:

Economists expect China to grow 7.5 percent in Q2 versus 7.7 percent in Q1, while cutting back on stimulus while pushing reforms is expected to lower China’s growth to the 6 percent range.

Alaistair Chan at Moody’s Analytics said 2013 is shaping up to be the slowest China since 1999, and the risk is increasing that GDP growth will come in below its 7.5 percent target.

Andrew Batson at GK Dragonomics, said the chances for China to achieve both structural economic reform and a smooth growth trajectory are much reduced, and China must give up its main tool for supporting short-term growth to have a good chance of decent longer-term growth. Batson said China needs to stop forcing SOEs to make lousy investments, though getting the state sector to invest, regardless of the short-term, kept growth from being even weaker in the 2008 and 2012 downturns.

Read the full article at  http://www.businessweek.com/articles/2013-07-12/as-chinas-gdp-slows-will-reform-be-sacrificed#r=hpt-fs

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