2 JunAdam M. Roseman, Adam Roseman, ARC China
Adam Roseman, Founder and Managing Partner of ARC China recently discussed the latest IMF official forecasts which show China’s economy surpassing America’s in real terms in 2016.
China’s GDP has increased above what was expected for the first quarter of 2011, according to the National Bureau of Statistics of China. The GDP has increased by 9.7% in the first quarter of 2011, which is higher than the target that China set for full year 2011.
The largest contributor to this growth has been consumer spending, with 5.9 percentage points out of the 9.7% growth. Urban fixed asset investments have also surged. In addition, the producer price index rose in China by 7.3% in March from the year before, and this is the highest that it has risen in 30 months.
Premier Wen Jiabao has made it known that one of his main goals is to keep the price levels stable for the coming year.
Adam Roseman concludes by explaining that, “ARC China anticipates that China’s economy will reach equilibrium between economic growth and growth in prices by the end of this year with stabilization continuing in 2012. The march of China’s economy to pass that of the US by 2016 should be viewed as the major economic story over the next decade.”