Recovery is underway in the United States and the rest of the world, but the Chinese mainland’s economy could face difficulties over its investment-based model, according to Harvard University economist Lawrence Summers.
In a recent interview with the Hong Kong Trade Development Council (HKTDC), Summers, a former US Treasury Secretary and current Charles W Eliot University Professor at Harvard’s Kennedy School of Government, said: “I think there’s a global-economy recovery underway, and I think the US economy has been in a recovery phase and continues to be in a recovery phase. The question really is what the pace of that recovery is, and will that recovery be sufficient to grow the economies? I think the answer to that question is ‘yes’.”
Summers also voiced “considerable concerns there will be some kind of discontinuity at some point in the next few years in China”, and said US worries about the mainland’s currency are “valid” and illustrate why renminbi appreciation would be welcomed.
Retail Times’ readers can watch the HKTDC video here http://youtu.be/t5HJvyft_JU