No Olympics hangover for China's economy
Posted on: 10:46 PM IST Aug 25, 2008
New Delhi: On Monday moring, following Sunday's Olympic closing ceremony, trades were back at the bourses in full force. Shanghai's benchmark Composite Index added nearly one per cent in morning trade, an indication perhaps that while the Olympic fireworks may have to come to an end, markets are yet to fizzle out.
European Union Ambassador to China, Serge Abou said, "I don't think that after the Olympics we will have a kind of post-Olympic trauma. I don't believe that. I think that the growth and improvement of Beijing will continue."
China spent more than $40 billion preparing for the Olympics of which $1.89 billion was spent on new sports facilities and another $40.75 billion on upgrading the city's infrastructure.
Analyts feel while the preparation for the Games fuelled a construction boom, the economy will steam ahead even after Beijing 2008.
President of American Chamber of Commerce, Beijing, Mike Barbalas said, "When we talked to our members, they were optimistic about the next five years. It doesn't mean it's all going to be up, or all at the same speed, but we see the long-term fundamentals for China's growth being very strong. We see good opportunities for US-China trade."
The Beijing Games was all about records being broken and despite the US playing spoil sport with its economic weakness, China is determined to cross the finish line first on all fronts.
But if at all the Chinese economy faces slowdown after the Olympics, that would be more due to external factors than Games-related economic activitities - the main factor being the slowdown in the US and European economies.