China’s boom times are over. With global investor sentiment slipping, concerns are rising about spillover effects of a faltering Chinese economy on global markets and institutions. Although the facts of the problem are well known, fixing it is another issue—the reach and pace of fundamental economic policy choices have been subject to debate. In September 2015, Willem Buiter, Chief Economist at Citigroup, and his team published a research note stating that it was likely that the global economy would soon slip into recession, caused by sluggish growth in emerging markets, especially China. In this interview, Buiter assesses Chinese economic growth and the potential for global recession.
Early indications show that the Chinese government’s efforts to prop up the economy might be able to steer clear of the risks of the 2009 economic stimulus
As the Chinese property market slows and complicates the country’s economic outlook, the government faces a tricky balancing act.