China climate growth

Analysis and comments by 
Globalist and senior analyst Jorn Thulstrup, MA (Econ)

There’s a widespread perception that China can rescue growth in the world economy and, within a number of years, overtake the USA as the world’s largest economy in terms of GNP. These expectations are grounded in the high growth rates and significant balance of payments surpluses the country has achieved for many years and which have provided financial reserves four to five times greater than the USA – in 2008 alone China had a balance of payments surplus of USD426bn, compared to a USD673bn deficit in the US.