The world’s second-largest economy China has been growing by leaps and bounds for the past one year. Further, the Asian Development Bank stated in a report on Apr 11 that China would keep growing more than 6% in 2018 as well as 2019. The recent shift of focus from manufacturing to services has been pivotal in China’s economic growth story.
Finally, Chinese President Xi Jinping recently announced plans to patronize global trade and set up policies to boost foreign investments in China. Under such broadly encouraging conditions, investing in stocks from China is expected to boost your fortunes.
ADB Expects China’s Growth to be Consistent
Despite China’s credit tightening, it has witnessed humungous growth in the past one year. If records are to be considered, China grew at an amazing 6.9% annual rate in 2017. In fact, the country experienced growth of 6.8% in the last three months of 2017.
Thus, growth actually slowed in the first quarter of 2018 to 6.7%. The reason for such a cooldown has been attributed to China’s efforts to rein in its humungous debt load as well as the recent weakness in the property market.
However, despite trade-war fears, GDP growth has remained intact amid robust trade data. Also, per the recent trade data released by the country, Beijing’s trade surplus with Washington increased by almost one-fifth in the first quarter of this year.
In a report published in Asian Development Outlook (ADO) 2018, the Asian Development Bank (ADB) stated that it expects the Chinese economy to flourish at a pace of 6.6% in 2018. Based in Manila, Philippines, the bank also expects the Asian giant to exhibit a 6.4% growth in 2019.
The report also stated that such stupendous growth would be achieved on the back of increased demand for Chinese products in both domestic and international markets. Moreover, the Chinese government itself estimated in March that the Chinese economy would accelerate by 6.5%. Experts are of the view that China’s economic policy focuses more on financial stability and a ‘sustainable growth trajectory.’