The Chinese economy is still strong despite fears about a hard-landing, Steven Rattner, Chairman of Willett Advisors, told CNBC’s “Closing Bell” on Thursday.
“I’m always amused to see these hard-landing stories, and then you find out that a consensus group of economists still think China is going to grow over 8 percent this year,” he said, noting the U.S. may grow just 2 percent. (Related: Buffett:U.S. Growth Slowing)
China’s second-quarter gross domestic productdata will be out on Friday.
JPMorgan's Chief Asian equity strategist Adrian Mowat told CNBChe expects China's GDP to come in at 7.7 percent year over year and 6.6 percent quarter over quarter. That would make it the weakest quarter since the final quarter of 2008.
“Part of why China is slowing down is because the rest of the world is slowing down,” Rattner said. “So it’s harder to deliver that export growth which has been so much the engine of their economy.”
Rattner does expect the Chinese economy to gradually decelerate over time. “I can't tell you what percent per year, but it should be about to do over 8 percent at least for a few more years and then it will slow down from there,” Rattner said. “Those are quite exceptional growth rates when you consider all of what's going on in the rest of the world."
He also said the bright side of slower growth in China and other emerging markets is lower commodity prices.
“If you want to worry about something, what I think you should worry about is the possibility that the slowdown affects their political stability,” Rattner said. “People worry about it in general, and certainly when there are economic issues they should worry more.”