Li Daokui, who used to work as an advisor to the Central Bank of China, stated that the economy of this Asian powerhouse has been able to avert a steep slowdown and it is all set to grow quite fast now. The main reason shown by Daokui behind the gains was the better financial health of the country’s citizen. China, incidentally, is the most populous country in the world.
Li Daokui, currently, works as an Economist for the Tsinghua University and used to work as the advisor to the People’s Bank of China for the 2 years between 2010 and 2012. According to Li Daokui, the policy of the country’s Government to speed up the construction projects has helped the country in a huge way. It has actually played an instrumental role in not letting the rate of growth to slow down any further.
Daokui said that it is kind of a soft landing for China’s economy and it has already avoided the hard landing. According to him, for the last 3 years, he has been saying that the growth rate will go down a bit and then will pick up its pace soon. The same has actually happened.
In the last 3 months of 2012, the Gross Domestic Product of China increased by 7.9%, thereby averting a deceleration for 7 straight quarters. The Chinese Government has played a pivotal role in driving a rebound to the retail sales, housing market and the industry output.
Numerous steel factory and railroad projects in the country have been speeded up by the Government. The per capita income of China is now around 18% of what the biggest economy in the world, US has. According to Daokui, China will now soon be able to bridge its economical gap with the rest of world by showing some tremendous sort of growth over the next few years.
However, Daokui cautioned the policy makers of China saying that the country still has a poor economy. So, the path to being one of the economic superpowers in the world is still long. However, according to Daokui, there are fundamental forces present in this Asian country, be it on the supply side or the demand side that make the case for China bright. If no major mistakes are made, it should grow quite well in the longer run.