By Greg Hugh, Staff Writer
The first 2010 meeting of U.S.-China Business Connections (UCBC) held in January at the Metropolitan Community and Technical College in Minneapolis, Minn. was attended by a capacity group that filled the packed meeting room.
COMMENTARYBy Louis Kuijs, Senior Economist, World Bank Office, Beijing
By World Bank Office, Beijing
Large fiscal and monetary stimulus has supported a recovery in China’s economy. Falling exports amidst the global recession have been a major drag on growth. Nonetheless, real GDP growth rose to 8.9 percent year-on-year in the third quarter on the back of the stimulus. Although most of the stimulus has shown up in infrastructure-oriented government-led investment, some has been consumption-oriented and domestic demand growth has been broad based. Resurgent housing sales have started to feed through to construction activity. Investment in manufacturing is affected by spare capacity, but consumption has held up well. The strong domestic demand has buoyed import volumes and the current account surplus may fall to 5.5 percent of GDP this year even with import prices down sharply. The downturn has clearly affected the labor market, but the impact has been smaller than expected and the trough may have been past.