China Growth Rates Forecast Gets Boost In Latest World Bank Update: What's In Store For The Future?

Nov. 3, 2010 - PRLog -- With a trade surplus likely to grow during 2011, the World Bank boosted its growth forecast for China and predicted that raising inflation should stabilize. The quarterly update also warned that Beijing needs to make the Chinese economy less reliant on trade to sustain the recent expansion.

Analyst Charles Shin at Pretium Ventures agrees with the report largely but warns that: “though growth looks good and China remains a healthy economy, slowing international demand means that Beijing will have to find a way to supplement their economic dependence on exports.” He also suggested that thought the Chinese Government has repeatedly announced that they are shifting their focus to consumer spending and service industries, little has been done in actuality. In reality, the government has continued to support manufacturing and export with little emphasis on domestic consumer spending.

According to Shin, the World Bank’s prediction of a decrease in Chinese growth will likely be received harshly by government officials. “After their growth begins to slow, the government will be forced to take a look at policy reform. The global economy just can’t support the supply that China needs to fill to continue this kind of growth. The Chinese have become accustomed to success, and they will do anything and everything that is necessary to ensure that the growth continues. Thought they haven’t made the necessary reform yet to stimulate their economy from within, when push comes to shove they will.”

“As a venture capitalist it is my job to predict trends spot good investments. In China there will be a time when the government says go out and spend. Do this or do that... and the Chinese people in large masses will do exactly what they are told. Industries including renewable energy, technology, and financial services will likely all be benefactors of these directives in the coming years when increasing consumer spending becomes absolutely necessary for the policy makers.”

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Pretium Ventures is a Hong Kong based investment firm that specializes in promoting successful growth of young companies. As a venture Capital firm Pretium Ventures is unique in their client centric approach to supporting the growth of businesses as well as their ability to cater to small to medium sized individual and institutional investors.

For more information please visit http://www.pretiumventures.com