__________________________________________________________________________________________________________
_______________________________________
_______________________________________
The year 2016 has begun with China-led tremors precipitating through global financial markets. But as the country now enters a critical phase in its transition to a new growth model, while making structural adjustments in its real economy, the fears appear to be somewhat overdone. As an upside to its slowing growth and weakening demand, China’s broader economic plan seems to be falling in place – with the Services1 sector (which in 2015 outgrew the once dominating manufacturing sector) taking central stage to wither out the erstwhile investment-led growth model, a promising rise in its tertiary sector (now over 50% of Chinese GDP), a low sub-2% inflation and a currency that’s slated to achieve a ‘reserve’ status in the years ahead – leading to better employment and disposal income generation for its citizens. ___________________ 1 Chinese services require about 30% more jobs per unit of output than manufacturing and construction combined |
_
'Like' This Article _
Other Downloads |
|
At the risk of being cautiously optimistic, the developments in China are apparently akin to an economy graduating from “the developing” to “the developed” world, and bear similarity to the US economy in the late seventies, albeit with the added complexities of a much more tightly financially integrated world of present times. And, Investors shouldn’t just rush to pick sides as the economic showdown between China and US plays out over the next decade.
|
To get the complete article mail us at [email protected]
|
__
_
_
_This site is best viewed in Firefox browser (ver. 8.0.1 or later)
Disclaimer: PRiS does not guarantee any specific financial returns, business outcome or market performance based on its research and advisory services.
Disclaimer: PRiS does not guarantee any specific financial returns, business outcome or market performance based on its research and advisory services.