Friday, 3 April 2009
The GFC. How far is the "tide going out", and when will it come back? Sobering statistics at the Australia China Business Council meeting I attended last night. Some Chinese constructions firms have seen demand go down to 20% (not down BY 20%, but down TO 20%)! The Chinese have never experienced a recession and they're worried. The view was put that such a dramatic fall in demand will take years to return, if ever. We have just entered a new era of low demand. This is the new normal. The tide has gone out and perhaps we won't see it come back, at least not to the same level it was before.