- Analytics
- News and Tools
- Market News
- China's economy adapting to the new normal – Nordea Markets
China's economy adapting to the new normal – Nordea Markets
Amy Yuan Zhuang, an analyst at Nordea Markets, says China's economy is adapting to the new normal and it has transitioned from the export-dependent growth model to a more domestically focused one.
- Household consumption and the service sector have grown rapidly in recent years. But some things remain unchanged – businesses and consumers react the same way to every downturn, and so does the government. Intolerance for an uncontrolled growth slowdown makes the authorities turn back to old stimulus tools when facing headwinds.
- The Chinese authorities have made efforts to adapt to the new normal. But at every growth downturn, they take a step back to the old stimulus tools – mainly leverage-funded infrastructure investments – to stabilize growth. This is leading to ever larger leverage and housing bubbles, which we see as ticking bombs for China’s medium-term growth sustainability.
- We still expect limited movements in USD/CNY in the near term.
- We expect lower GDP growth and moderate inflation for the coming two years. Given the early signs of green shoots, we do not think any rate change is on the cards. We expect the CNY to stay broadly unchanged versus the USD but to weaken versus the EUR.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
