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17 Reasons Why Experts Are Convinced China's Economy Is Doomed

Jul 15, 2013, 17:19 IST

Bloomberg Briefs, @m_mcdonoughThe economists are rapidly slashing their forecasts.Economists and investors around the world are finally getting used to the idea that China's years of blazing hot growth are a thing of the past.

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While GDP will continue to be above average for years to come, China's policymakers are pushing reforms to cool its housing market, legitimize its financial system, reduce corruption, and rebalance its economy as one driven consumption, not exports.

However, the cost of all of these efforts is slower growth. And with public and private financial liabilities sky-high, more and more experts are worried that China will experience a hard landing, a scenario where the economy decelerates to roughly less than 5% causing unemployment to spike and social unrest to sweep the cities.

As you can see from the chart above, GDP expectations are coming down quickly. And behind those numbers are disturbing trends in demographics, credit, housing, and other fundamental factors that are supposed to fuel the Chinese economy.

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