“The problem now is not how to withdraw the stimulus packages, it is how to restore growth. To save its economy, the United States has to save more. But if the United States saves more, someone else has got to save less if we are to maintain around a 5 percent growth rate for the global economy. This is an equation that needs to be resolved in the coming 2-3 years. It is going to be an issue of realigning exchange rates globally.”
Youssef Boutros-Ghali, chairman of the International Monetary and Financial Committee (IMFC) of the IMF – interview with China Daily, July 2009
What more can one say! I remain not too optimistic. Too much unemployment in USA and EU. Consumers won’t spend if they have little or no income, need to save and avoid home foreclosure.
In Beijing the oversupply in the office market only can get worse. Just walk around in CBD. Residential sector is doing reasonably well as many Chinese still need to increase and improve their living space. But that’s the low-end market. Some blame rampant government corruption and fat profits from developers for high real estate prices. At least that explains why Lamborghinis are selling well in Beijing. Even in our modest Julong you can see some. This week I saw a bunch of them being unloaded. The money has to come from somewhere.