China’s workers must spend if economy is to gain steam
Ifs crunch time for China's economy. The country's long-term health requires a new model where growth is driven by consumption. The next few months should tell us whether China's leaders are able to pull it off.
Last week, we saw a snapshot of where growth driven by investment eventually leads. Overcapacity in the property sector has resulted in home prices falling in most cities for three straight months.
China trade to go beyond the boom
Japan has a population of 128 million, China 1.4 billion. Japan’s economy is already mature. China only entered the ranks of upper middle-income countries in 2011, and the World Bank expects that the transition to a mature, high-income economy will take at least another 15 to 20 years.
The Victoria-China Economic Relationship
1. The annual value of Victoria’s goods exports to China is $4.2 billion.1 This is –
1.9 times that to the U.S
2.2 times that to Japan
2.2 times that to New Zealand
2. The value of Victoria’s goods exports to China increased by $2.0 billion in the past five years. This is –
4.1 times that to the U.S
5.5 times that to Japan
16.9 times that to New Zealand