China

This Time article looks at one of my favorite topics- the comparison of India and China – and makes a surprising statement that India’s economy may be better than China in one key aspect– rebounding from the recent economic crisis. As with a few other writings that have pointed out the weaknesses with China’s recent economic , this piece highlights fears of a property bubble, fuelled by China’s massive government stimulus last year, and non-performing loans carried by its banks, which an expert calculated as possibly going up to US$400 billion. Another interesting fact to note is “private domestic consumption accounts for 57% of GDP in India compared with only 35% in China.” Given China is supposedly better off than India, in terms of GDP per capita and social factors like life expectancy and literacy, this is surprising. Of course, this could just be because of how much China’s economy is geared towards manufacturing and exports.

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