The latest growth figures in China – published on Friday – suggest that the country’s economic slowdown has indeed bottomed out. Its economy expanded at an annual rate of 7.8 per cent for the third-quarter of this year, up from a rise of 7.5 per cent in gross domestic product from the previous quarter. The storyline is becoming a bit monotonous and perhaps that is good. However, views over whether this rebound is sustained are mixed. Optimistic bulls predict the small uptick will continue next year yet the less convinced bears factor in a small decline. There are also extreme bears who still predict an imminent collapse or growth falling to an annual rate of 3-4 per cent. Of the latter two arguments, one is implausible and the other illogical.
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