FXStreet (Delhi) – Cristian Maggio, Head of Emerging Markets Strategy at TD Securities, suggests that the China’s economic miracle is not over, it’s just transforming in order to build the foundations of a new growth paradigm that helps sustain growth for decades to come.
Key Quotes
“China’s growth is decelerating for a number of factors. For one, as the economy grows bigger, the growth rate will normally tend to shrink. So in 5 or 10 year time, expect China’s growth to be even slower, but the size of the economy may still double over the coming decade, so the impact of China on global growth will remain more than relevant.”
“Second, the China rebalancing is happening. Consumption has now grown to the major contributor of GDP formation. China is the only economy in the world where the political leadership has decided to drift away from an economic model to a new and more sustainable model, and this has been working.”
“Third, China’s urban population has grown larger than the rural one. The challenge is to continue along these lines towards the goal of becoming a middle-income country. But for that to be possible, it’s not just a matter of creating more jobs, but rather creating more qualified ones through the enhancement of the technological content and thus value of China’s products.”
(Market News Provided by FXstreet)