'GDP per capita growth in China still strong'
The head of the United Nations Sustainable Development Solutions Network said China still enjoys strong economic per capita growth despite a headline slowdown that was dragged in part by property downturns. Speaking at a group interview at the 17th edition of the Asian Financial Forum held in Hong Kong, Jeffrey Sachs, who is also a professor at Columbia University, said China's economic growth of 5.2 percent last year was “pretty good” as its per capita growth was still rapid. “If we use growth as a shorthand for living standards, what counts is growth per person, not total growth of the economy,” said Sachs. “That's a pretty big advantage for China. In other words, the faster growth or what I called ‘economic convergence’ continues. Population change will slow the headline number, but China can continue see growth per person even as the population is stable or declining.” By contrast, he cited a 2 percent per capita growth in the United States. China's population has dropped for two straight years, and Sachs said such declines are expected as the economy continues to mature. The US economist added that he believes China’s financial stresses – seen in the property sector and local governments – are a “cyclical process” and will not fundamentally change the country's growth trajectory.