With commodity prices now at a much lower level, we have two ways of reacting: either fully adjust to the new external environment and find a new centre of equilibrium for further growth, or continue spending reserves to cover the deficit in the balance of payments.
We may grow much faster in the future, we may grow much slower in the future. But what we are feeling now is a bad debt overhang problem.
Stimulating domestic migration could be a key instrument in overcoming economic stagnation.
If China can transform part of corporate debt into government debt in the next two years, there is hope that it will go back to a higher rate of growth.
What we discovered in the latest crisis is that both the market and the government can be wrong. [..]We need a new system of checks and balances between government and market forces.
In cooperation with VTB Capital
In cooperation with EY
In cooperation with PepsiCo