In Asian steps

China's growth is not as remarkable as it seems. It is impressive but it is by no means without precedent.

by World Business

The factors that underpinned the growth of the Asian tigers over the past few decades have much to teach us about China today.

Asia's remarkable growth from the 1960s onwards was due to its very high rate of capital creation, which was three times faster than in the US or EU. Asia grew faster because it invested more and was driven by its unusually high savings ratios - a trend that is being repeated in China today.

From 1965-1995, US gross savings rates averaged 18% of GDP and the US economy invested 17% of GDP. In Asia, the average domestic saving ratio was 32% and the region was able to generate investment rates of 31%. China's current growth trend is impressive: from only 4% of global GDP in 2000, it is expected to account for 11% by 2025.

China's true growth: no myth or miracle
Jonathan Anderson
Far Eastern Economic Review, September 2006

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