Tulloch: China's 7.5% growth forecast too optimistic

First State Investments Asia Pacific star Angus Tulloch has warned China will undershoot current GDP forecasts this year, as its domestic economy fails to take up the slack left by waning oversaes demand.

Tulloch, managing the £5.9bn Asia Pacific Leaders fund, said domestic consumption is falling back, while retail sentiment is also on the decline. As a result, he currently sees GDP growth below the government target of 7.5% for 2012 as a whole. “When I visited a number of companies in China last month it was clear the country’s growth rate had fallen quite a bit more than what is being recorded, so I think there is potential for more surprise on the downside,” said Tulloch. “Domestic consumption is not growing at the 15% rate the government has been indicating, instead retailers ar...