43: China: The consumption powerhouse

L&G Talks Asset Management · Apr 10, 2019 · 38m

Investing in the Chinese economy often deals with particularly impressive numbers. This is an economy which has tripled in size since 2005, even now contributing approximately a third of all world GDP growth despite fears that China’s growth has fallen to a ‘mere’ 6%. When a fifth of all travel expenditure comes from the less than 10% of Chinese citizens who hold passports, the Chinese consumer is already an immense driving force of that growth.

Despite this, the medium-term investment outlook for China is often presented as mixed. The surge in debt levels and demographic concerns over an…