China: 2018 was a robust year of growth – Westpac

According to Elliot Clarke, analyst at Westpac, December quarter was another successful one for Chinese officials, with annual and year-average growth at December 2018 coming in at 6.4% and 6.6% respectively – either side of the 2018 target of 6.5%.

Key Quotes

“As anticipated by the market and Westpac, the quarterly pace was on the soft side, circa 6.0% annualised. This is nearer the pace of growth expected through 2019 – Westpac currently forecasts year-average growth of 6.1% in 2019.”

“In a year when their economy has been buffeted by slowing global growth; trade policy uncertainty; and, most significant of all, material structural reform across industry, government and the finance sector, this is a robust result and outlook.”

“In 2019, easier financial conditions for private firms and SoE’s as well as pro-active central government support for quality, market-funded local government infrastructure investment should see aggregate investment growth stabilise then firm – benefitting consumers via job and income gains.”

“Though China’s annual growth rate may have slowed, the changes made to their financial sector and across industry in 2017/ 2018 put them in good stead to enjoy robust, quality growth in coming years despite global uncertainties.”