China's president is sure that China's economy will grow by 7% this year. From his remarks one can make a safe deduction that stability is returning to the China's stock market and that puts to an end speculation that a global stock market crash is coming.
Well, it is probably just something he is saying to put fears to rest about their economy and how they are doing. He may also be making hopeful projections into the future, and as all we all know, what we hope for doesn't always happen. It is just one of the things that we can't really depend on. I guess we will just have to adopt a wait and see attitude.
Him making that statement will affect the Chinese markets in a positive way. I can see their economy having a huge boost in growth. They have that by any means necessary attitude when it comes to production, the type where they put output first and human health second.
I'm not too sure if the Chinese economy will grow by that much. The second round effects of the slowdown of the Chinese economy, will create a further dampening on growth. The global economy economy is still very frail, I'm not too sure it will be possible for them to generate that kind of output internally. GDP growth estimates in my experience, always start off in one place and end up in another. In general I find that government estimates are always a little more positive, but I guess we will have to wait and see.
