After years of powering ahead at growth rates of more than 10 percent a year, China is now in the throes of a major economic overhaul aimed at raising productivity and domestic demand.
But that revamp comes with slower growth. The economy — the second-largest in the world after that of the United States — could struggle to grow at a rate of 7.5 percent this year.
For the last few years, Asia’s developing economies — like China, Indonesia, the Philippines and Thailand — have been powering ahead of much of the rest of the world, buoyed by a heady cocktail of stimulus from policy makers at home and investment flows from abroad. In 2011, the region grew more than four times as fast as the American economy, and last year’s 6.5 percent growth was nearly three times that of the United States. Stock markets in the Philippines and Thailand were among the world’s best performers in 2012.
Over the past couple of months, however, some of the shine has come off the Asia story. If this is right, how does this affect us in British Columbia aka “The Gateway to Asia”?
Only time will tell. Stay tuned for another chapter in the enigma that we call the Vancouver Real Estate Market.