mpc.theyserveforyou.com

mpc: 9 In Asia, Japanese export growth had been weaker than expected and employment had fallen, suggesting that GDP growth remained muted. Nevertheless, machinery orders and corporate profits pointed to an improving outlook for investment. The Asian contribution to global growth continued to be driven by China, which had reported an annual growth rate of 9½% in 2004 Q4, close to the average annual growth rate recorded since 1978. Such rates of growth could be sustained for a considerable time, judging by the previous experience of Japan, South Korea and others, as it was possible for China to draw on the considerable reserve of labour present in the agricultural sector. It was, however, less plausible that the share of investment in demand ­ over 40% ­ was sustainable in the long run.