China GDP is forecast to increase to 8% next year, supported by a recovery in local demand and a better global environment as a coronavirus vaccine is deployed.
China’s long-term growth potential of around 5.5% is considered a baseline level of growth. However, 2020 will be below at approximately 2.3%.
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Analysts predict global growth to contract 3.7% in 2020, yet expand 5.3% next year.
Whilst we’re attracted to the growth prospects in China, we remain cautious on the level of forward earnings growth “baked” into the current US equity market forecasts for 2022.
