China’s growth – the trade-off investments vs consumption and Japanese lessons


Martin Wolf on the Financial Times  provides an analysis about how China’s growth could slow down and, eventually, end in a bump because of the investments-led growth strategy. There are signals that the investments are lowering their returns and the consumption is growing too slowly in order to fill up the gap. Among the other arguments given by the author, there are the ‘middle-income trap’ and the size of China. I need some expert macro-economist telling me whether the parallelism with Japan is too rash. It is worth for a deep reading!

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