WEEKEND ECONOMIST: Tracking Chinese growth

Westpac's outlook on Chinese economic growth is clearly different from the Reserve Bank's. While its has remained fixed, the RBA has been focused on iron ore prices and GDP figures.

We have maintained a below consensus view on Chinese economic growth since this time last year. The Reserve Bank of Australia appeared to start 2011 with an optimistic outlook, began to recognise a moderate slowing in the third quarter, downgraded prospects late in the year and have seemingly become a little more optimistic of late. In this essay we track the evolution of the Reserve Bank’s ‘one-liners’ on China to get a feel for how their perception was shifting relative to our ‘fixed’ position.

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