Adding 14% to GDP is a very serious fiscal adjustment that clearly is working.
And it is operationally sustainable if they so desire.
Not to mention the credit expansion and foreign direct investment.
Yes, there can always be setbacks, but nothing that a fiscal adjustment can’t handle.
By John H. Makin
It is important to understand how Chinaâ€™s remarkable reported economic performance is possible in the midst of a global recession. True, China enacted a massive stimulus package last November worth about 14 percent of GDP and aimed at boosting domestic demand as exports fell sharply.