STOCK MARKET WATCH -- Wednesday, 19 November 2014

[Demeter]

15. China Maybe Be Slowing, But Still Fastest Growing Economy On Earth

AND ONE OF THE MOST OPAQUE, ALTHOUGH I NO LONGER TRUST ANY GOVERNMENT'S PRESS RELEASES THAT INCLUDE NUMBERS....

http://www.forbes.com/sites/kenrapoza/2014/11/18/china-maybe-be-slowing-but-still-fastest-growing-economy-on-earth/



Although the hard landing aficionados won’t admit defeat, China’s command and control economy has managed to orchestrate a soft-landing. And despite slower growth, the world’s No. 2 economy will outpace every emerging market around. Only smaller frontier markets will do better in percentage terms.

The days of double digit growth are over. China will be lucky to grow over 7%. Despite that, China will continue to be the world’s fastest growing major economy this year and next, and arguably into 2016 as well, says Bill Adams, senior international economist for PNC Financial in Pittsburgh.

“Indian real GDP growth may exceed China’s in 2016, but India’s economy is less than one quarter the size of China’s,” he wrote in a report to clients this week. The yuan’s strength relative to other emerging market currencies, China’s slower economic growth, industrial overcapacity, and low global commodity prices have kept Chinese inflation low this year, likely averaging 2% and picking up to the 2.5%-3.0% range over the next two years. That’s compared to over 5% in India and Brazil, and over 8% in Russia....MORE