Economist: China’s Economic Decline Will Affect CNMI, April 4, 2016

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Pacific Islands Development Program, East-West Center With Support From Center for Pacific Islands Studies, University of Hawai‘i

Economist: China’s Economic Decline Will Affect CNMI Bank of China may impose restrictions on global investments

By Cherrie Anne E. Villahermosa

SAIPAN, CNMI (Marianas Variety, April 4, 2016) – The recent decline in China’s economy will affect all of its investments abroad, including those in the CNMI, according to Bank of Guam senior vice president and chief economist Joseph P. Bradley.

He was the guest speaker at the Commonwealth Development Authority’s 30th anniversary celebration last week at the Saipan World Resort.

He said it was "likely to happen sometime in the next few years" that the Bank of China will impose restrictions on Chinese global investments.

"This is what Guam experienced in the early 1990s when Japan’s economy deteriorated — and [Japan] is still in bad shape."

He added that the continuing decline of Japan’s population is bad for its economy as well.

"Japan will continue to have problems in the future even if their economic policy…comes into alignment. The population is aging rapidly, and they have a smaller group of young people trying to support a larger group of older people and that is going to affect their economy."

As for South Korea’s economy, Bradley said although it has its ups and downs, it is more stable than those of China and Japan.

South Korea, China and Japan are the CNMI’s top three tourism markets.

 

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