Jim O’ Neill, the chairman of Goldman Sachs Asset Management said that China growth has slowed down considerably of late, and even though this may not be good news for some people, O’Neill suggests that this is good quality growth the country is seeing.
China reported falling imports and lackluster growth in exports in the month of August, this was worrying news for the worlds second-largest economy. O’Neill, in an interview said that the trade data for China was quite concerning, as is was supposed to be transforming away from the old model, and move towards consuming more. There are also hopes that China would import more from the rest of the world.
According to reports, the economy of China continues to slow down and a 7.5 percent target for Beijing seems likely for the year. O’Neill also said that the days of ten percent growth are probably over and the country’s economy is growing at a slower and healthier pace.
In terms of raising consumption, the Chinese need more confidence, and a stronger support mechanism in health care. O’Neill also said that by the year 2015, China might move closer to adjustment but it might not be an easy path.