CHINA TOPIX

11/05/2024 11:21:27 am

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British media: China can deal with the situation of economic slowdown

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(Photo : Chinese Shipping)

Even though Beijing published the " tiny stimulation" plan, it is obvious that China's economy is still far away from the bottom line. In the near future, the development speed of world's second largest economy is slowdown and lower than 6%-7%. Most experts think lower increase rate GDP will stimulate chaos, but maybe the number they focus on is wrong.

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Simply logic shows that China cannot keep the high development speed no matter how balance the economy is.

After several years' increase rates are higher than 10%, the increase rate of GDP dropped to 6%-7%. This might conflict with what Chinese expect every day. Does this case really cause chaos? Not really.

As so many famous economists pointed out, the increase rate of the median of family salary is very important for economic transformation in China. As other citizen, Chinese don't care about the share of GDP but care about their salary.

Recently, the increase rate of annual per capita disposal income is always higher than 7%. In order to keep society stable, the increase rate of annual per capita disposal income should close to 7%. In other words, if China wants to keep its economy balanced, the requirement of increase rate for GDP is 3%-4%. Which means the 6%-7% increase rate is useless.

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