Friday, November 22, 2013

China growth to slow down

Marc Faber when asked about China's economic challenges in the future:

"Well I mean there are many challenges. Basically they have a misallocation of resources, they have a credit growth, there’s a lot of (expected?) capacities in some industries. And that present time the economy, in my view and based on some corporate results, it would appear that the economy is hardly growing. So, this very strong growth we had in the last say 10, 20 years is going to slow down regardless, to a range in my view of between four to six percent. If you’re lucky they grow at that rate. But the question is, from this ten-percent growth rate plus minus to say your range to four to six percent is that transition going to be a smooth transition or interrupted by some kind of a crisis? I think some kind of a crisis scenario is quite likely."