`Uncontrolled' Dollar Is China Inflation Threat, Official Says
Oct. 26 (Bloomberg) -- Marc Faber, publisher of the Gloom, Boom & Doom report, discusses the potential impact of further quantitative easing by the Federal Reserve on stocks. Faber, speaking with Margaret Brennan on Bloomberg Television's "InBusiness," says more monetary easing could disappoint investors and may prompt a correction in U.S. stocks. (Source: Bloomberg)
China may account for a record </a>30 percent of global growth over the next decade even as the nation’s economy expands at a slower pace, UBS AG said.
That would compare with a 12 percent share between 1998 and 2008, Beijing-based economist Wang Tao said in an e- mailed report dated yesterday, citing the International Monetary Fund for the historic data.
China’s expansion may cool because of smaller increases in investment and the labor force and as productivity gains become harder to secure, Wang said. At the same time, the increasing heft of the economy, the world’s second biggest in the second quarter of this year, means it will account for a larger share of global expansion, she said.
Lou Jiwei, the chairman of China Investment Corp., the nation’s sovereign wealth fund, said yesterday that China may experience a “big drop” in the pace of growth in the next three to four years as more of the population retires. His comments were in the prepared remarks of a speech obtained by Bloomberg News.
For the 15 years through 2009, China’s economy expanded by an average of 9.9 percent a year, according to government data. Wang, head of China economic research at UBS, sees “trend growth” slowing to an average of 7.8 percent for the decade from 2011 to 2020.
The world can continue to expand at a pace of between 3 percent and 3.5 percent, “mainly because China and other emerging market economies, the faster growers, will account for an increasingly large share of the world economy,” she said.
UBS projects that China’s gross domestic product will expand by about 9 percent in 2011 and 2012.
--Paul Panckhurst. Editors: Sunil Jagtiani, Paul Panckhurst.
To contact Bloomberg News staff for this story: Paul Panckhurst in Beijing at +86-10-6649-7574 or ppanckhurst@bloomberg.net
To contact the editor responsible for this story: Chris Anstey at canstey@bloomberg.net
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