In a company newsletter, ARC China’s Adam Roseman discussed Jim O’Neill’s outlook on the Chinese economy in comparison to that of analysts of the region.
According to O’Neill, China’s growth in the fourth quarter was indeed slowly than that of previous years, but still exceeded the expectations of numerous experts who predicted a “hard landing” for the economy in 2012.
Roseman writes that “China’s economy grew 8.9% in the fourth quarter from a year earlier, the statistics bureau said in Beijing. That exceeded the 8.7% median estimate of 26 economists surveyed by Bloomberg News and is above the 8% that signals a ‘soft landing’ for China, according to SinoPac Financial Holdings Co.”
The article explains that O’Neill believes the overheated property market is China’s main economic problem. Still, China’s policy makers have been able to reduce the issue by closing in on monetary policy.