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But a gear-shift to a durable growth rate of 8-10% seems seems out of reach.Without it, that burgeoning workforce may seem less of an advantage.
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To build a more durable growth motor: one based on increased productivity.
Even if China can avoid the immediate danger of a crash, the move to a newer, more durable growth model represents a tremendous challenge.
Growth investing, either in early stage growth or durable growth, is inherently investing in sectors that are undergoing a lot of change.
On the contrary, the IMF economists said, reducing inequality led to faster, more durable growth.
The conclusion is that "lower net inequality is robustly correlated with faster and more durable growth".
IMF [International Monetary Fund] research – examining 173 countries over 50 years – has shown that more unequal countries tend to have lower and less durable growth.
But financial and corporate inefficiencies were at the epicentre of the economic crisis, and have to be dealt with to restore durable growth.
"And the resulting narrowing of inequality helped support faster and more durable growth, apart from ethical, political or broader social considerations".
Many companies with the economic characteristics I am interested in (long haul, durable growth and high returns on invested capital) are going to be significant beneficiaries of exit and consolidation in this intense downturn.
For example, early stage growth vs. durable growth; meeting with boards vs. reading and thinking.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com