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- China: Downward trend for economic growth – Standard Chartered
China: Downward trend for economic growth – Standard Chartered
Analysts at Standard Chartered note that China’s economic growth is on a downward trend, having slowed steadily to 6.6% in 2018 from a peak of 14.2% in 2007.
“While the slowdown is a nationwide phenomenon, growth in the south has outpaced that in the north in recent years; and within the southern region, new engines of growth are emerging and surpassing the country’s traditional growth-driving regions. The growth potential of the south-central region remains large, in our view. In 2018, its per-capita GDP was the lowest in the country and its urbanisation rate was 4.8ppt below the nationwide level. Its growth has surpassed the national rate since 2001 and the rest of the southern region since 2008, averaging 10.8% over the past decade. Meanwhile, increasing numbers of industrial companies may have relocated to the region in recent years to take advantage of lower wages and housing prices. The central government has adopted a coordinated regional development strategy to boost infrastructure investment and improve the business environment in less developed areas.”
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