China’s economy isn’t as bad as the prevailing mood suggests and growth is moving in the right direction as consumer spending picks up, according to an official at the British Chamber of Commerce in China.
(Bloomberg) — China’s economy isn’t as bad as the prevailing mood suggests and growth is moving in the right direction as consumer spending picks up, according to an official at the British Chamber of Commerce in China.
While the recovery has slowed, “I don’t actually buy the notion that the Chinese economy is in serious systemic trouble,” Chris Torrens, vice chairman of the chamber, said in an interview on Bloomberg Television.
The economy is performing as would be expected in the year after Covid restrictions were lifted, he said, noting that consumer spending on services has picked up.
“Sitting here in Beijing and traveling around China, I’m seeing more consumer spend,” he said. “We feel things are going in the right direction.”
Economists have been downgrading their growth forecasts for China into next year as latest data showed a worsening in the property market, slower consumer and manufacturing growth, and a slump in private investment.
Gross domestic product will likely expand 5.1% this year, according to economists surveyed by Bloomberg, in line with the government’s target of around 5%.
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