The Middle Kingdom has been sprinting in terms of economic growth for more than 20 years. Ever since China made significant economic reforms in 1991, the economy has been averaging a GDP annual growth rate of 9.38% (up to 2012). This makes the idea of China having to ‘rebound’ ludicrous, in a sense. But China actually has been slowing down since the 14.2% GDP annual growth rate of 2007, which was part of the Olympics boom.
Post-Olympics China has slowed down, but is still growing rapidly. It reached a recent low in 2012, but there is reason to believe that the dragon is still awake
According to an article from Bloomberg, all signs are pointing to an ‘upturn’ from last year’s economic ‘woes’.
The article points out that amidst increasing employee wages and an increase in the cost of raw-milk, Nestlé was able to more than double sales this year compared to last year.
Outside of corporate results, some major banks, including Bank of America Corporation and Deutsche Bank AG, have increased their growth projections. This is a result of China surpassing the August 2013 forecast for industrial production, retail sales, and aggregate credit.
This is great news for anyone interested in learning Mandarin, or that has an financial stake in the Middle Kingdom. Mr. Deesch Papke, CEO of Porsche China, put it best when he recently said, “The epicenter of the world has for many reasons moved from the U.S., across Europe and now is sitting in Asia, and China is obviously the powerhouse of Asia.”
There is still opportunity to be had in China! While large MNC’s continue to invest billions into the Chinese market, there will be reason to stay bullish on China.