CHINA HAS BOTTOMED OUT

FIVE YEARS THAT WILL SHAPE CHINA'S FUTURE

Yu Yongding

The National, December 6, 2012

The most recent official data shows convincingly that the Chinese economy has bottomed out, and it is now widely expected that annual GDP growth should reach about 7.8 per cent this year. This should come as no surprise.

To rein in rising house prices and pre-empt the inflationary impact of the strongly expansionary fiscal and monetary policies implemented during the global financial crisis, China's monetary authorities began to tighten financial conditions in January 2010.

Monetary tightening, administrative measures introduced by various municipal governments to stem the run-up in the housing market, and the waning effect of the government's US$642.3 billion (Dh2.35 trillion) stimulus package resulted in a gradual economic slowdown.

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