Think that China may quickly bounce back from the economic downturn? You might want to think again.
The Bright Spots
Of course there are plenty of reasons to believe that China is an unstoppable engine of economic growth. Just recently, Goldman Sachs turned uber-bullish on China -- and raised their real GDP growth forecasts for both 2009 and 2010.
And optimism about China stretches across a wide range of American industries, from equipment maker Caterpillar to KFC-chain operator Yum! Brands.
They say its insatiable appetite for everything from heavy machinery to fast food -- due at least in part to the $585 billion stimulus -- is stabilizing the market and providing a growth outlet just when they need it most.
Also, China's gross domestic product growth would suggest strength; in the first quarter growth was recorded at 6.1 percent. True that's the weakest since quarterly figures were first available in 1992, but it's scorching when compared to the contraction happening in Western nations.
It absolutely makes sense to think that China will lead the world out of the global recession. But something is fishy.
