Investment guru Jim Rogers says China could suffer a recession like other global economies, but he likes its prospects just the same.
China’s economic growth slumped to an annual rate of 9 percent in the third quarter from 10.6 in the first quarter. While the United States would kill for such numbers now, experts expect China’s expansion to fade.
“A lot of people think China can't have a recession,” Rogers tells Time magazine.
“That's balderdash. China can have a recession like everybody else.”
But that’s no reason to turn bearish on the country’s assets, Rogers says.
“Is it the end of the story? No. If it happens, you buy yourself some more China.”
“China could have a recession, but it's not going to be the end of the story,” Rogers says.
“In the 19th century, America had 15 depressions with a ‘d,’ a horrible civil war.We had very few human rights and no rule of law.”
China is vulnerable to a real-estate crunch, notes Stratfor, a global consulting firm.
China’s central bank predicts that in the coming two years housing prices will slide by up to 30 percent and that the country’s housing market would not begin to recover until 2010, a Stratfor report explains.
The bank also publicly revealed its worries about a liquidity crunch among real estate companies and banks, the reported noted.
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