Signs that China’s economic recovery is gaining speed have led to optimistic revisions to GDP growth forecasts in the past week.
The World Bank upped its estimate for Chinese economic growth to 7.2% as against its March forecast of only 6.5% growth for this year. The OECD weighed in with a prediction of 7.7%, versus a 6.3% figure three months ago. Credit Suisse is calling for 8% growth this year and 9% in 2010.
Sales of automobiles have soared this year as auto sales in China climbed 14% in the first five months to nearly 5 million and the market is estimated to reach 11 million units this year.
China’s property sector is rebounding faster than most had predicted. Housing prices dropped sharply across the country starting last September, and sales volume slowed to a trickle. By early February sales volume picked up dramatically, and residential floor space sold in the first five months is up 27%.
What’s more, prices have not only stopped falling but in cities like Shanghai they are picking up, contrary to expectations.
Business Week Eye on Asia included after this item some Reader Comments, one of which reflected what many people have been thinking. The missive asked:
"Would these economists be the same ones that missed the great recession even though it was staring them in the face?"
Yes, they are.