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.