China Sets GDP Dial To 7; Hikes Military Spending
Mar 4, 2015 @ 10:43 PM
China has set its GDP growth dial to 7% this year, and few doubt they will miss the target…by much.
“As long as there is not a hard landing, investors should feel pretty good about 7% growth,” says Andrew Wang, senior vice president of Runnymede Capital Management in New Jersey.
Apparently 7% is precisely where this economy is heading in 2015. Premier Li Keqiang told the opening of the annual meeting of the National People’s Congress in Beijing that despite the lowest growth target in over 10 years, the government was focused on sustainable economics. What’s unsustainable is fixed asset investment into roads and bridges, provincial spending on real estate, and a shadow lending system that promises to take down more companies than the handful that have already gone belly-up and resuscitated by the powerful central bank.