Executive Briefings

China Slowing Down? Its Consumer Economy to Grow 50 Percent By 2020.

For roughly three decades, China's booming economy has offered consumer product companies some of the world's greatest growth opportunities. China's economic slowdown and jittery markets have raised worries that this growth story is drawing to a close. In early November 2015, for example, the government lowered its official five-year annual GDP growth target to 6.5 percent, the slowest pace since the 2008–2009 global financial crisis.

China's economy is indeed struggling through a significant structural transition, and consumption isn't rising as fast as it did during the peak boom years. But make no mistake: although the pace is slower and the course is bumpier, consumption growth is still tracing a staggering trajectory. China's consumer economy is projected to expand by about half, to $6.5tr, by 2020 - even if annual real GDP growth cools to 5.5 percent, below the official target. The incremental growth of $2.3tr alone over the next five years would be comparable to adding a consumer market 1.3 times larger than that of today's Germany or UK.

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China's economy is indeed struggling through a significant structural transition, and consumption isn't rising as fast as it did during the peak boom years. But make no mistake: although the pace is slower and the course is bumpier, consumption growth is still tracing a staggering trajectory. China's consumer economy is projected to expand by about half, to $6.5tr, by 2020 - even if annual real GDP growth cools to 5.5 percent, below the official target. The incremental growth of $2.3tr alone over the next five years would be comparable to adding a consumer market 1.3 times larger than that of today's Germany or UK.

Read Full Article