China´s overheating economy Sanne Rüütelmaa
Fast economic growth in Asia <ul><li>Asia is pulling away from the developed world  </li></ul><ul><li>If Central and Easte...
Asian industrial production is now well above the previous peak, while the US languishes below
China´s overheating economy <ul><li>Instead of supporting the growth of economy, it is necessary to cool it </li></ul><ul>...
 
Reason <ul><li>Last year, China made the largest contribution to growth in real estate  </li></ul><ul><li>Property prices ...
 
What to do? <ul><li>Bigger downpayment for large housing loans </li></ul><ul><li>At least 50 percent of the payment, highe...
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China's overheating economy

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China's overheating economy

  1. 1. China´s overheating economy Sanne Rüütelmaa
  2. 2. Fast economic growth in Asia <ul><li>Asia is pulling away from the developed world </li></ul><ul><li>If Central and Eastern European economies would grow just 2.8 percent this year, then in Asia the economic growth is expected more than 3x faster </li></ul><ul><li>Economic growth in Asia has rebounded at double-digit rates </li></ul>
  3. 3. Asian industrial production is now well above the previous peak, while the US languishes below
  4. 4. China´s overheating economy <ul><li>Instead of supporting the growth of economy, it is necessary to cool it </li></ul><ul><li>Economy grew 11.9 percent in the first quarter </li></ul><ul><li>Consumer price inflation fell from 2.7 to 2.4 percent </li></ul>
  5. 6. Reason <ul><li>Last year, China made the largest contribution to growth in real estate </li></ul><ul><li>Property prices rose at a record pace in March, up almost 12% from a year earlier </li></ul>
  6. 8. What to do? <ul><li>Bigger downpayment for large housing loans </li></ul><ul><li>At least 50 percent of the payment, higher interest rate (second loan) </li></ul><ul><li>Not to grant third loan </li></ul><ul><li>More flexible monetary policy would help China keep inflation munder control. </li></ul>
  7. 9. Thank you !

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