On Monday morning in Asia, Bloomberg has cited China’s government researcher Xu Hongcai to convey a slower shift in consumer investment-driven growth over the next five years. They cite the aging population and shrinking workforce as the main reasons behind this conclusion.
Xu Hongcai is deputy chairman of the economic policy committee of the China Political Science Association, a group of experts from the policy research bureau of the Communist Party Central Committee. Their analysis suggests that “Consumption’s share of gross domestic product is likely to grow at a slower pace compared to previous years“.
Additional comments:
“Consumption has passed the phase of rapid increase and it will only slowly increase in the future“.
“Economic growth still needs investment support.”
“The government will need to direct more funds to invest in infrastructure and facilities that improve care for the elderly and promote urbanization ”.
“Xu also warned that China may face the risk of imported inflation as a stronger global economy pushes higher commodity prices“.
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
