China: GDP growth has exceeded expectations - Westpac

In view of analysts at Westpac, Chinese GDP growth has easily exceeded market expectations and the authorities’ full–year forecast of 6.5% as far as 2017 is concerned and while robust growth has continued in the services sector, it is fair to say that underlying consumer momentum has disappointed.

Key Quotes

“These observations emphasise that, while a country like Australia may stand to benefit most from the structural rise in Chinese services consumption, for China itself it is the strength of its industrial capacity and the trade linkages it has with the rest of the world that will continue to lay the foundation of income and opportunity.”

“Here we see the significance of the one belt, one road policy for 3 reasons: (1) it allows China to take maximum advantage of the capacity of its workers and capital; (2) in time it will build the international exposure of its economy and financial markets; and (3) if successful, the policy will cement China’s geopolitical power, both in the region and across the globe.”