economy - No signs of overheating - Stiglitz

China's is showing no signs of overheating, economist and 2002 Nobel price winner Joseph Stiglitz said today in Shanghai. Trade deficit, inflation and tightness at the labor markets are three signs for overheating that have not a worrying level in China, Stiglitz said.
"Deflation has changed in the past year into a slight inflation, it should be monitored but is no reason for worry," Stiglitz said. The same goes for the labor supply and the trade deficit, that has changed from a trade surplus into a deficit, but is also not of a dangerous level.
Stiglitz: "China has the potential of rapid growth and needs to grow very fast to absorp its labor resources."
China is exploring new waters, the economist said, no other country had seen such a long period of economic growth on such a high level.
China has to develop a strategy for environmentally sustainable development, Stiglitz added, who appealed on the US to do more to make China more energy-efficient.