January 26, 2007 | posted by Michael Baxter in IABN |

Meanwhile talking of China, the economy behind the Great Wall saw GDP grow by 10.7 percent in 2006. That’s the highest growth rate in 11 years.
So that’s four years in a row with growth in double figures. The country has overtaken the UK already, and is now on course for overtaking Germany during 2008, to become the World’s third largest economy.
Up to now, it’s been investment that has been driving the economy forward. Ironically, China is partially funding the consumer spending sprees of the West. This is driving up commodity prices, hence the high price of oil, and booming steel industries.
Maybe, however, the real impact upon us will occur when consumption starts to take over from investment as the spur to growth.
When that finally happens, maybe the world will see new inflationary pressures emerge, as Chinese consumers join Western shoppers in forking out for those luxury items.
And here’s a little known fact that may fascinate you. Did you know that before the industrial revolution India and China had been the two richest countries in the world for over a millennium.
So all we are seeing at the moment, is the return to that status quo.