CHINA - The Chinese economy is ripe for schemes looking for long-term investments, an International Monetary Fund report claims.
The report commends Chinese economic ministers for guiding the country through two external shocks – the Asian financial crisis of 1997-98 and last year’s global economic slowdown.
It says: “Near-term economic prospects remain favourable, with a strong domestic growth momentum and a robust external position.”
The IMF report has coincided with a report on China by Deutsche Asset Management which describes the country as holding significant long-term opportunities.
Chief global strategist Adam Seitchik said that while economic data was very difficult to verify, it was “quite clear that China continues to grow and it has very good long-term growth prospects. It is all about productivity growth”.
He added: “We really need to see China as a potentially very significant long-term opportunity for investors, as Japan was in 1960.”
China’s real GDP reached a peak in 2000 at 8.0, but slowed in 2001 to 7.3, however, it is now on the rise again with the IMF putting the 2002 rate at 7.5.
Seitchik said: “Although it has a huge number of people, it has a very small GDP per person, but that is changing over time.
“The entrance into the World Trade Organisation is not only about China accessing foreign markets, but foreigners accessing what is going to be a huge economy over time.”
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