China GDP to Hit the 'Social Unrest Red Line': Credit Suisse

According to 'experts' China needs to grow at a rate of at least 7 percent per year to avoid unrest. China grew well above this level in the past several years, however, this year forecasts are coming close to that level, with many analysts predicting GDP growth of 7.4%. Indeed, just yesterday,  riots which occurred in Western China left at least 27 dead.

However, according to Andrew Garthwaite of Credit Suisse we might soon get below that level. In a new report he predicts GDP growth of just 6%. Certain sections of the report can be found below. One saving grace, Andrew says it will take 'several years' before China gets to the 6% level, but does not specify a timeframe. It could very well be that the number is just picked out of a hat and/or Chinese will reach 6% slow enough to avoid social chaos.

Our Concerns About China