| | New Economist: Growth, productivity, competitiveness |
 | | Even if China's GDP were to grow indefinitely at 11 percent a year-- 9 percent real growth plus 2 percent inflation -- and the U.S. experienced 5.5 percent growth -- 3.5 percent real and 2 percent inflation -- it would take the Chinese 40 years to catch up in terms of nominal GDP. |
 | | They suggest that the trend rate of global GDP growth is currently 3.5% and the global output gap turned positive to the tune of about 1% of global GDP in 2005: in other words, the global economy is expanding at a rate that is above its trend or "potential" growth rate. |
 | | Sustainable nominal GDP growth of 5.5 percent annually is well within the capability of the U.S. Eleven percent growth, about what Chinese authorities expect in 2006, isn't remotely possible in the long run. |
| neweconomist.blogs.com /new_economist/growth_productivity_competitiveness (13713 words) |