Economist and author Richard Duncan
By Chris Oliver, MarketWatch
HONG KONG (MarketWatch) — China’s era of rapid economic growth is drawing to a close, with a great moderation now inevitable, according to economist and author Richard Duncan.
“I don’t think [China] will be able to achieve their current rates of growth in the next five years,” Duncan told MarketWatch in a telephone interview from Bangkok.
Among reasons for the changes, he said, Beijing won’t be able crank up credit growth further without inflicting self-damage, nor is its export-led growth model viable as the taps tighten on worldwide easy money.
Duncan believes it’s only government life-support in the form of deficit spending that’s kept the global economy from falling into a depression since the 2008 credit crisis, and if the slowdown spreads as he expects, China won’t have an easy time shielding its economy from a slump in consumer demand.
“The whole story of the global economy is that there’s too much supply of everything and insufficient global demand,” said Duncan. Full story here
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