UBS' Donavan Says Global Growth Helps China

The video discusses China's economic growth forecast for 2018, highlighting infrastructure spending and potential risks in the property sector. It examines China's management of leverage and credit markets, noting the country's experience in handling these issues. The discussion also covers capital controls and foreign exchange reserves, suggesting that significant capital outflow pressures are unlikely. The focus then shifts to the US, analyzing employment trends and the implications of reaching full employment, including the impact on nonfarm payrolls and average hourly earnings.

What is one of the key factors expected to support China's economic growth in 2018 despite a slowdown in the property sector?

• Decrease in interest rates

• Increased consumer spending

• Infrastructure spending

• Reduction in export tariffs

How have the Chinese authorities been managing their domestic credit markets?

• Through strict capital controls

• By allowing free market dynamics

• By micromanaging credit growth

• By increasing foreign investments

What is a potential signal that Chinese authorities might be losing control over economic growth?

• A rise in property prices

• Unexpected declines in credit growth

• Increase in foreign investments

• Decrease in infrastructure spending

What is a characteristic of the US job market when it is at full employment?

• Increase in average hourly earnings

• Creation of lower skilled jobs

• Rapid growth in nonfarm payrolls

• High unemployment rates

Why might average hourly earnings tend to be lower at full employment in the US?

• Due to higher inflation rates

• As a result of increased foreign competition

• Because of the creation of lower skilled jobs

• Due to a decrease in job availability