The Olympic Games in Beijing focused the world’s eyes on China with unprecedented intensity. Generally regarded as a spectacular success, the Games are now over and China returns to business-as-usual. This gives us an opportunity to take stock of the nation’s economic prospects in a period of heightened uncertainty in the global economy.
Can China continue to grow at the spectacular pace that we have seen over recent years? Will consumers take up the baton from exports and investment to become a major driver of GDP? What is the likely impact on China of financial pressures arising out of the United States as markets continue to adjust to the fall-out from the subprime mortgage crisis? How will high energy prices impact on Chinese industry and consumption and how will business cope? Will China continue to build up foreign-exchange reserves to the dramatic degree that we have seen in the recent past? What are the likely trends in China’s financial
markets and will they develop to the extent necessary to continue supporting growth? What key risks could jeopardize China’s high growth trajectory?

Authors: Jonathan Woetzel, Janamitra Devan

You can view English version of the article from here or Chinese version of the article from here.