Lehman: GDP growth remains unbalanced
20 May 2008
A Lehman Brothers economist said a breakdown of 2007 GDP data shows that China's economic growth remains unbalanced, XFN-Asia reported. Sun Mingchun said investment and net exports accounted for over half of China's 2007 GDP, while household consumption made up only 35.3%, down from 36.3% the year before. "Such unbalanced growth is not sustainable, and we judge that a major slowdown in external demand will unmask China's overcapacity – the syndrome of past unbalanced growth – in the second half of 2008," Sun said in a note. China's GDP growth hit a 13-year high of 11.9% in 2007.
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