China’s economy stormed back to power 1/3rd of global growth in 2017 and its government is making progress in restraining runaway credit growth.
With the signs of quiet consumer spending have surfaced the markets in U.S., China is clocking its first back-to-back acceleration in seven years. Better-than-expected, Chinese economy has accelerated by 6.9%, which is powered due to the strength of exports, housing, infrastructure investment, and retail sales. This has been done by the world’s second-biggest economy without worsening credit risks.
China has given the strong first quarter data and is on track to provide at least as much in 2017, according to Rob Subbaraman, chief economist for Asia ex-Japan at Nomura Holdings Inc. “China, at least in the near term, is in a sweet spot with growth momentum strong and inflation pressures easing,” said Subbaraman. “Whichever way you dice it, the first quarter was a strong set of numbers.”
The economy of China is in the midst of a major structural shift and Chinese rebound may deliver positive second-round effects for the world economy.
“Emerging markets will benefit from this strength in Chinese growth firstly through commodities demand and support for commodity prices,” said Rajiv Biswas, Asia-Pacific chief economist at IHS Markit in Singapore. “Secondly, the whole Asian manufacturing supply chain will get a boost from stronger Chinese growth.”