China's growth

The numbers are out and China's GDP grew 6.1% last quarter. Down from the 13% 2007 numbers, China is not in bad shape. Here are some important attributes:

* China's financial system is healthy and the banks are lending
* China has a fiscal surplus and is financing it's stimulus through that

China's biggest challenge is to increase domestic demand so the country is not as export reliant. This is a tall order. Yes, there were record car sales in March, but the Chinese do not have health plans or social services and continue to sock money away for a rainy day.




http://english.aljazeera.net//business/2009/04/20094163218569726.html