Economics
Morgan Stanley's China Bear Puts Zero Odds on 6% Economic Growth
- No country has expanded so fast with a shrinking labor force
- Sharma says growth likely to be capped at 4-5% in coming years
This article is for subscribers only.
History is not on China’s side when it comes to the nation’s economic growth goals for the next five years.
No economy over the past half century has expanded at 6 percent or more as its labor force shrank, according to Ruchir Sharma, the head of emerging markets for Morgan Stanley Investment Management. China, which must grow at least 6.5 percent a year to meet its goal of doubling 2010 gross domestic product by 2020, is more likely to expand between 4 percent and 5 percent as the country’s working-age population contracts, he said.