Page A14: Many economists are wondering whether Chinese consumers, once a thrifty lot, will lead the world out of the recession. IMF said China China would do just that, thanks in part to the $600 billion stimulus package and a flood of banking lending. kIMF increased its forecast of Chinese growth to 8.5% in 2009 while lowering its foreecast for the US economy, which it said would shrink 2.7%.
According to marketing research by Ogilvy & Mather, 70% of Chinese children attend at least one extracurricular program, mostly English classes. Ten million are learning to play violin. One million Chinese people a year get cosmetic surgery.
The Chinese consumer now has the wallet to sustainably increase consumption spending. The question is the will." Mohamed El-Erian,Chief executive Pimco said. C sector occupies circa 2/3 of GDP in the US and in China as well.
My comment: English is needed in China and Chinese is to be encouraged in the United States for building human capital in both countries. Consumption is a matter of lifestyle apropos of human behavior in micro-economics.
But the Micro view would influence the Macro outlook in the days to come.
Francis Shieh a.k.a. Xie Shihao on Tuesday, October 6, 2009 at 2.32 p.m.
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