How China can hit targets with lower GDP growth

Market analysis

Investors are acutely focused on China's GDP figures, but shifting to a consumer-led economy means the country can reach key objectives with lower GDP growth. Kunal Ghosh from Allianz Global Investors explains why.

Over the course of the past decade, investors have grown accustomed to an industrialised China serving as the global manufacturing hub. This is a China which has simultaneously exported to the rest of the world, and built world class domestic infrastructure. The success of this model is also evidenced by the double-digit economic growth the economy has shown for almost a decade. However, since the global financial crisis, this economic model has changed permanently. China’s hopes are now for a service-orientated and consumption-driven economy. Investors are still attuned – with Pav...