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China's economy post-Olympics
 Source: MediaScrape
China may have spent more money on the Olympics than any other nation in the history of the games. But the government has billions of dollars in reserves. And experts say the economy will not feel any aftershocks when the games are over. Big government infrastructure projects are likely to stoke fresh jobs and services. Newly urbanised consumers are expected increase their spending patterns and pump money into the economy. Arthur Kroeber is a Beijing based economist. SOUNDBITE (ENGLISH) ARTHUR KROEBER, MANAGING DIRECTOR, DRAGONOMICS, SAYING: "China's economy has 3 speeds. It's like a car with 3 gears. And the top gear is stupidly fast. and the second is very fast and the lowest gear is just fast. and I think what we're doing is going down from stupidly fast which we've had the last couple of years to really fast this year and just plain ordinary fast next year." Experts agree that China is unlikely to remain immune from a global economic slowdown. The major risk is inflation which in the past has caused social upheaval. SOUNDBITE (ENGLISH) ARTHUR KROEBER, MANAGING DIRECTOR, DRAGONOMICS, SAYING: "In any developing country, when there is an authoritarian political system like China or a democratic political system like India, high inflation is a big political problem because you have large numbers of people with low incomes and they get hurt very very badly in terms of their their standard of living if there is inflation." China's bruised stock market may point to some harder times ahead. Heavy losses this year and weakening corporate profits are showing investors the down side of a capitalism. Tara Joseph-Hui Reuters, Beijing.
Rating: (0 ratings) Views: 10 Added: Aug 26, 2008
Category: Business
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