China’s GDP grew higher than expected at 6.9%YoY in 2Q led due to strong consumption story, according to Iris Pang, Economist at ING and as a result ING has revised their forecast for the whole of 2017 to 6.8%.
“GDP and other data confirm our view that China is now a consumption driven economy. Retail sales grew 11%YoY, beating all the forecasts (ours was 10.7%YoY), while fixed asset investment at 8.6% YTD YoY although slightly higher than our estimate of 8.4%, was still low compared to the growth of retail sales.”
“Consumption and exports will continue to drive growth in 2H, and these two categories in GDP will continue to support industrial production. Investment will play a smaller role in industrial production, especially when property developments in prime locations are going to slow down. Altogether, these should mean slower growth in 2H but at a lesser extent than we had previously thought.”
We therefore revise our “GDP forecasts for 2H lower. Due to higher base effects in 4Q and slower investment growth. We estimate that GDP growth will slow to 6.8% and 6.7% in 3Q and 4Q respectively. That results in a 6.8% projection for the whole of 2017.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.