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Thread: How long will China's economic aftershocks last?
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[quote=APAULT,290987]In terms of the overall economy, I think the effect will be small. It is just a tiny part of China's productive capacity. Normally the rebuilding would boost the economy but as the economy is already overheated it might simply cause resources to be switched from elsewhere and add to inflation. The massive rebuilding in an overheated economy will mean it will take several years, but as it happens we should see increased vigour in the economy there. Rebuilt factories, for example. are likely to have newer and more efficient equipment.[/quote]
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