Saturday, January 22, 2011

China in 2011

Gordon Orr, a director in McKinsey’s Shanghai office, predicts what might happen in Chinese economy this year:

  • Inflation in food prices will take longer than expected to control.
  • Middle-class bankruptcies will expand dramatically.
  • Minimum wages will rise, but productivity gains will outstrip labor costs.
  • China’s economic growth will be lower than expected.
  • China will step up its “invest out” program in the new five-year plan.
  • The state will again try to reduce its ownership role in business.