Question

What is the future for the Chinese economy?

What is the future for the Chinese economy?

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Answer #1

The Chinese economy is expected to grow at lower than the average growth rate seen over the past two decades because it is facing issue of low consumption growth and the earlier economy growth was led by the investment spending as it spent huge capital investments on capacity additions across industries. Going forward, we are seeing it to cut excess capacities which would lead to lower growth on investment GDP side. We are expecting some improvement on consumption side, but still it would not offset investment GDP lower growth. So overall we expect moderate growth in range of 5-7%.

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