China growth set to slow, but opportunities still await – Westpac

In its weekly economic update, Westpac expects China’s economy to slow further but likely recovering after 2021. Some of the key points mentioned are as follows:

• China GDP continues to slow, likely testing 5.8% in 2020 from 6.1% in 2019.
• US trade tariffs exert downside pressure on the economy.
• The prime issue is the recently perilous relations between the US-China.
• External demand is set to weaken and becomes even more important when investment in the manufacturing sector is particularly weak.
• Jobs and household incomes are also at risk.
• Despite best efforts by Chinese authorities, investment by statutory bodies and local governments is yet to gain.
• Looking after 2021 and beyond, China’s political and economic relations with the rest of the world, the pursuit of technological progress could start paying.
• However, the authorities should break the structural pyramid of income to have a better future.