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...economic boom, more and more of the country's 1.3 billion people can afford cars, refrigerators and flat-panel TVs items not too long ago considered luxuries for a fortunate few. Chen Baogen, Xi'an's mayor, says his city of eight million had lagged behind towns on the export-oriented coast, but now incomes are growing to the point where consumption is taking off. In the first nine months of 2009, retail sales in the city increased by 19%, well above the 14.8% growth posted in China's cities nationally. "Xi'an has reached a very important development stage...

Author: /time Magazine | Title: Will China's Consumers Save the World Economy? | 11/15/2009 | See Source »

...message consistent. For example, he has indicated that, in the interest of fiscal responsibility, he may toss overboard some of the $77 billion in programs that the DPJ offered to increase household disposable income. The purpose of this spending is to help shift Japan from an export-led economic model to one led by consumption. During the country's 2002-07 recovery, fully one-third of GDP growth was attributable to a rising trade surplus. As the severity of Japan's current recession showed, this is not a sustainable path. (Read Will an Opposition Victory Rescue Japan's Economy...

Author: /time Magazine | Title: Hatoyama's Challenge in Japan | 11/9/2009 | See Source »

...full capacity, the port is expected to export about 6.7 million tons a year of liquefied natural gas to Asia, Europe and the U.S., earning between $30 billion and $50 billion for Yemen's government over the next 25 years. That's an attention-getting number for any economy. Another notable figure is 500. That's the number of Yemeni soldiers who were hired to guard the heavily fenced facility and pipeline. Because in a country as unstable as Yemen, any symbol of progress is a target...

Author: /time Magazine | Title: Yemen-Saudi Skirmishes Threaten a Wider Conflict | 11/9/2009 | See Source »

...just indiscriminate bank lending that has retarded moves toward rebalancing. Outright government subsidies to businesses have increased in the past 12 months. Everything from bicycle makers to textile producers to chemical companies have seen their export subsidies rise because their markets worldwide were shriveling, and a panicky Beijing was spooked by the prospect of massive unemployment if factories shut down. "By transferring wealth from households to boost the profitability of producers, China's ability to grow consumption in line with growth of the nation's GDP is severely hampered," says Michael Pettis, a finance professor at Peking University's Guanghua...

Author: /time Magazine | Title: Could China's Economic Policies Trigger Another Crisis? | 11/3/2009 | See Source »

...Bernanke gave a speech in which he said that while personal savings in the U.S. is now rising, the government had to get its own accounts in better order. He then pointedly noted that "policies that artificially enhance incentives for domestic savings and the production of export goods" have got to go in order "to reduce the risks of [future] financial instability...

Author: /time Magazine | Title: Could China's Economic Policies Trigger Another Crisis? | 11/3/2009 | See Source »

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