Rogoff: Recession to Hit Asia When China Bubble Pops

Like many others, Harvard economist Kenneth Rogoff believes China is in a credit bubble that will ultimately burst.

And that development could send the country’s economic growth down to 2 percent within 10 years, he told Bloomberg.

That would represent a veritable plunge from the current level of about 10 percent and likely throw the entire region, including Japan and South Korea, into recession, says Rogoff, former chief economist at the International Monetary Fund.

Latin American commodity exporters also would suffer, as China is a huge customer for them.

“You’re not going to go a decade without having a bump in the business cycle,” Rogoff said. (more)