After 30 years of scorching double-digit growth, the Chinese economy is showing signs of slowing.
“Good news!” say some analysts as the drop in growth is a sensible step as necessary reforms kick in.
China is revamping its economy from resource hungry power-house to a model more sustainable in the long term.
Figures for gross domestic product reveal a gradual easing of growth from 8.9 percent in 2011 to 7.7 percent in 2013.
So who are the winners in all this and who are the losers?
Andrew Mok, Economist and CEO of Red Pagoda Resources says, “From a global economic perspective, I think some of the losers will be countries and companies who are supplying raw materials to China. Some of the winners will be those focused on the consumer, so, perhaps fast moving consumer goods, services, perhaps outbound travel.”
The Chinese government wants to shift the emphasis in the economy away from investment and exports and towards promoting greater domestic consumption.
A gentle fall-off in growth means more power to policy makers – giving them the leeway for difficult changes while keeping monetary policy stable and avoiding a spike in job losses.