Alberto Matellán, Chief Economist in MAPFREs’ Corporate Investment Area, explains how China 2017 GDP affects the global economy.
Chinese GDP figures came out significantly better than expected: 4Q yoy growth was 6.8%, one tenth higher than expected, which leaves 2017 growth at 6.9%, two tenths higher than 2016 and comfortably far over the authorities target of 6.5%.
This is very good news for some of the key variables that may impact markets in 2018, namely European growth, global inflation and Chinese policies.
Growth at the same time imbalances are addressed
One of the key takeaways of these figures is that they happen at the same time imbalances are being reduced. Back at the start of 2016 figures and expectations for the Chinese economy were quite pessimistic. That’s why Chinese authorities kept pumping stimulus even though worries about imbalances were already building up. At the same time, financial regulation started driving money out of savings and into consumption. And that may be part of the reason for recent good performance.
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