Amidst a litany of bad news about China’s economic prospects, BusinessWeek has a more optimistic take on the situation:
…This litany of woes may indeed mark the beginning of the end of China’s economic travails, say China watchers. “Don’t be disheartened by disappointing numbers in the fourth quarter,” says Jing Ulrich, managing director and chairman of China equities at JPMorgan Chase (JPM) in Hong Kong, who says growth in industrial production and exports may be negative. “I feel there is a glimmer of hope, and the second quarter will show signs of economic recovery.” By that time the benefits of China’s massive $582 billion stimulus package (BusinessWeek.com, 11/9/08) could start to flow through, and the economy could kick into a higher gear once again. Annual gross domestic product growth could well slow to 7% in the first half but exceed 8% in the second half, says Ulrich, ensuring that the economy chugs along fast enough to prevent unemployment from rising.
Read more about the Chinese government’s possible new stimulus package via AP.
