April 25 (Reuters) – China’s economy is rebalancing.
Unfortunately it is changing a lot like the U.S.’s did in 2006
and 2007, with a sudden slowdown in real estate.
That was perhaps inevitable, but raises some familiar risks
- a chain reaction of real estate losses, debt defaults and a
sudden slowdown in growth.
The costs for the rest of the world could be high,
particularly in places like Brazil and Australia which have
prospered by feeding China’s formerly insatiable appetite for
China’s GDP is expected to slow to growth of 7.3 percent
this year, down from last year and the smallest expansion in 24
years, according to a new Reuters poll.
On the surface, that’s in line with a government goal of
transitioning from an economy dependent on investment, to one
more like that of more developed countries with a higher