Whilst China’s economy is facing a period of extreme turbulence as a result of Covid lockdowns and geopolitical factors, it’s worth remembering the very strong position it found itself in at the end of 2021 (following a period of 8.1% growth which exceeded most expectations) and the sectors that are likely to propel the domestic economy forward in the future. As usual Visual Capitalist has done an excellent job of presenting this in one single graphic: Visualizing China’s $18 Trillion Economy in One Chart:
Whenever I read doomsday forecasts on the future of China’s economy (and there are plenty of those around at the moment!), I always remember the words of my friends and business partners in China who have taught me to ‘never under-estimate China’. Time will tell but I won’t be betting against a rapid turnaround later in the year fuelled by Government stimulus, quantitative easing and the sheer hard work and persistence of the Chinese people seeking a better life for themselves and their families.