AS Colins Continental - China’s Economy Unlikely to Overtake US
A new report by AS Colins Continental shows that China’s economy is unlikely to surpass that of the US by 2030 as was previously predicted.
New Taipei City, Taiwan, October 26, 2022 --(PR.com)-- China’s rise to economic greatness has long been analyzed by economic experts around the world. Earlier this year AS Colins Continental reported that some analysts believed China’s economy would exceed that of the US by the year 2030.
In January, a report by the British consultancy Centre for Economics and Business Research predicted that China’s economy which is currently the world’s second largest, would expand by more than 5% per annum until 2025 when growth would likely fall to around 4.7% annually. This would place China’s economy ahead of the US economy.
However, a new report by AS Colins Continental reveals that this prediction is unlikely to materialize. Analysts at the Asian based investment house believe that China’s growth will start to slow more significantly in the coming years. They predict that China’s economy will likely expand by no more than 3 percent annually.
“Early rapid growth was relatively easily achieved by China,” says Mr. Wen-hsiung Chen, CFO at AS Colins Continental. “The country was once largely run by the state and the massive injection of foreign capital that resulted from allowing the private sector to run and take ownership of their own businesses led to inexpensive labor and investment opportunities.”
In contrast to the early easy growth that China experienced, its maturing economy is now experiencing a series of hurdles.
The report by AS Colins Continental pointed to several factors which could contribute to slowing economic growth in China.
Friction between China and the West could see a decrease of foreign investment. Growing debt have begun to plague businesses leading to defaults, most recently seen in the property sector.
China’s zero Covid policy has been hampering productivity for many months and this is causing massive disruptions to supply chains and exports.
“Perhaps the most difficult hurdle to overcome is China’s aging population,” says Mr. Wen-hsiung. “The number of people of working age in China is decreasing with every passing year. By 2050, China will have lost 20 percent of its population that is of working age.”
In January, a report by the British consultancy Centre for Economics and Business Research predicted that China’s economy which is currently the world’s second largest, would expand by more than 5% per annum until 2025 when growth would likely fall to around 4.7% annually. This would place China’s economy ahead of the US economy.
However, a new report by AS Colins Continental reveals that this prediction is unlikely to materialize. Analysts at the Asian based investment house believe that China’s growth will start to slow more significantly in the coming years. They predict that China’s economy will likely expand by no more than 3 percent annually.
“Early rapid growth was relatively easily achieved by China,” says Mr. Wen-hsiung Chen, CFO at AS Colins Continental. “The country was once largely run by the state and the massive injection of foreign capital that resulted from allowing the private sector to run and take ownership of their own businesses led to inexpensive labor and investment opportunities.”
In contrast to the early easy growth that China experienced, its maturing economy is now experiencing a series of hurdles.
The report by AS Colins Continental pointed to several factors which could contribute to slowing economic growth in China.
Friction between China and the West could see a decrease of foreign investment. Growing debt have begun to plague businesses leading to defaults, most recently seen in the property sector.
China’s zero Covid policy has been hampering productivity for many months and this is causing massive disruptions to supply chains and exports.
“Perhaps the most difficult hurdle to overcome is China’s aging population,” says Mr. Wen-hsiung. “The number of people of working age in China is decreasing with every passing year. By 2050, China will have lost 20 percent of its population that is of working age.”
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AS Colins Continental
Pai-Han Lin
+886277033000
ascolinscontinental.com
Pai-Han Lin
+886277033000
ascolinscontinental.com
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