Thursday, May 5, 2011

China population turning-point to spur inflation:state economist - Reuters


China's census results show the world's second-biggest economy is nearing a demographic watershed that will auger wage rises, higher inflation and relatively lower growth, a prominent government economist said in comments published on Thursday.
Ba Shusong, a senior economist at the State Council Development Research Center, which advises the central government, said the 2010 census data issued last week, together with a clutch of other statistics, showed China's supply of abundant cheap labor would start shrinking soon.

"The current data show China has already crossed the Lewis turning point, and at the same time the window of the demographic dividend will soon close," Ba wrote in the Economic Information Daily.

(Reporting by Chris Buckley; Editing by Ken Wills and Alex Richardson)
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