'China not facing US-style housing crunch danger'
Housing market slowdown may weigh on China's growth but China's is not in danger of a US- style housing crunch if sales and demand continue to fall, a US expert said Monday.
"Certainly there are signs of cooling down. Sales are down, investment is still going fairly strongly, but it will follow off if sales continue to be relatively weak," said Nicholas Lardy, a senior fellow at the Peterson Institute for International Economics.
Lardy said continued drop in property investment and demand of housing could pose big risks to China's growth because much of Chinese economy is housing-related.
However, he noted, the leverage associated with investment in China's housing market is fairly modest, and the household debt as a share of GDP, though has gone up quite a bit, is still relatively low.
"If prices soften for a while, you are not going to find a large number of borrowers under water immediately, and trying to liquidate their ownership of property," said Lardy.
The situation in China is going to play out quite differently from those in the advanced economies where housing market is also a concern, Lardy added.
(Posted on 13-05-2014)
Information on States of India:
Andaman Nicobar | Andhra Pradesh | Assam | Bihar | Chandigarh | Chhattisgarh | Dadar Nagar Haveli | Daman Diu | Delhi | Goa | Gujarat | Haryana | Himachal Pradesh | Jammu Kashmir | Jharkhand | Karnataka | Kerala | Lakshadweep | Madhya Pradesh | Maharashtra | Manipur | Meghalaya | Mizoram | Nagaland | Orissa | Pondicherry | Punjab | Rajasthan | Sikkim | Tamil Nadu | Tripura | Uttar Pradesh | Uttaranchal | West Bengal
INDIA REGIONAL MAPS:
Andhra Pradesh Travel Map | Bihar Travel Map | Goa Travel Map | Gujarat Travel Map | Haryana Travel Map | Himachal Pradesh Map | Karnataka Travel Map | Kerala Travel Map | Maharashtra Travel Map | Punjab Travel Map | Rajasthan Travel Map | Sikkim Travel Map | Tamil Nadu Travel Map | Uttar Pradesh Travel Map | West Bengal Travel Map |
MORE MAPS OF INDIA:
INDIA CITY MAPS:
KERALA TRAVEL MAPS: