There was a time in the early 2000s when China appeared to be on a path to become the world’s largest economy. In less than 20 years (1992 – 2010), Chinese GDP rose by a staggering 1,100 per cent. But it was a different story thereafter, as economic growth fell to around 6 per cent. In addition, the current account surplus fell from 4 per cent to just over 1 per cent of GDP and government debt ballooned.
At the same time, there was significant progress, particularly in terms of quality of life (Tens of millions have been better housed, 90 per cent of the poorest 100 million people have been lifted from poverty).
Looking ahead, there will be more cooling of the economy, especially if there is no resolution of the trade war with the U.S., which could escalate in 2019. Government stimulus could help reverse some of the decline, but it is no longer an unlimited resource.
For more information, contact Debbie McGuire, Manager – Freight Solutions.