Business Times - 10 Jul 2009
(NEW YORK) Billionaire George Soros called China 'a positive force' that will help drive growth as the world emerges from the current economic crisis.
'For China, the crisis is something affecting them from the outside,' said Mr Soros, 78, in a Bloomberg Radio interview. 'They can stimulate their economy. They have reserves. They have a trade surplus. They will be one of the motors of the world economy.' Mr Soros, who is no longer involved in the day-to-day operation of his US$24 billion New York-based Soros Fund Management LLC, has said that the growth rate of the last 25 years will not resume.
The International Monetary Fund (IMF) said that the global economic rebound next year will be stronger than it forecast in April as the financial system stabilises. The Washington-based lender said in a revised forecast released on Wednesday that the world economy will expand 2.5 per cent in 2010, compared with its April projection of 1.9 per cent.
China's growth is forecast to accelerate to 8.5 per cent next year, a percentage point more than the IMF expected in April, after slowing to 7.5 per cent this year.
Mr Soros warned that the current crisis will not be solved only by boosting consumer and business confidence. US banks are still holding a lot of bad assets and that will weigh on the economy, he said. 'There is a part of reality that can't be manipulated,' he said.
Soros's Quantum Endowment Fund has returned almost 18 per cent this year till May after climbing 8 per cent in 2008.
The financial crisis, which started with the collapse of the US property market in 2007, has triggered more than US$1.47 trillion of write-downs and credit losses at banks and other financial institutions and sent the global economy into its first recession since World War II, according to data compiled by Bloomberg. -- Bloomberg
(NEW YORK) Billionaire George Soros called China 'a positive force' that will help drive growth as the world emerges from the current economic crisis.
'For China, the crisis is something affecting them from the outside,' said Mr Soros, 78, in a Bloomberg Radio interview. 'They can stimulate their economy. They have reserves. They have a trade surplus. They will be one of the motors of the world economy.' Mr Soros, who is no longer involved in the day-to-day operation of his US$24 billion New York-based Soros Fund Management LLC, has said that the growth rate of the last 25 years will not resume.
The International Monetary Fund (IMF) said that the global economic rebound next year will be stronger than it forecast in April as the financial system stabilises. The Washington-based lender said in a revised forecast released on Wednesday that the world economy will expand 2.5 per cent in 2010, compared with its April projection of 1.9 per cent.
China's growth is forecast to accelerate to 8.5 per cent next year, a percentage point more than the IMF expected in April, after slowing to 7.5 per cent this year.
Mr Soros warned that the current crisis will not be solved only by boosting consumer and business confidence. US banks are still holding a lot of bad assets and that will weigh on the economy, he said. 'There is a part of reality that can't be manipulated,' he said.
Soros's Quantum Endowment Fund has returned almost 18 per cent this year till May after climbing 8 per cent in 2008.
The financial crisis, which started with the collapse of the US property market in 2007, has triggered more than US$1.47 trillion of write-downs and credit losses at banks and other financial institutions and sent the global economy into its first recession since World War II, according to data compiled by Bloomberg. -- Bloomberg
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