“The long-term growth of the world economy is coming from China.” – Jeremy Schwartz, WisdomTree’s director of research

China’s economy has been marked as one of the fastest growing, leading economies of this decade and continues to perform strongly, with growth projected at 6.6% for 2018 and accounting for around one-third of global growth.¹ Over 800 million people have been lifted out of poverty and have achieved an upper middle-income status while China’s per capita GDP continues to converge to that of the United States.

The sheer size of China’s population and market show prospects for more growth in the near future.  As the Chinese economy continues to evolve and grow into maturity, high-end industries such as healthcare, information technology, engineering, robotics and luxury goods, among others, can enter the competitive market with favorable conditions and plentiful resources. Despite the trade restrictions, China has and will play an increasingly important role in world trade. Additionally, some of the primary sectors of development and aligned governmental support in the next years will be the tech industry.

Historically speaking, in 2000, China was responsible for approximately 2% of global imports and exports, while these numbers significantly increased to 10% for imports and 11% for exports as of 2016.² In addition, according to analysts from Vanguard, China has an immense potential for long-term growth, where foreign investors will benefit from exposure to China’s dynamic market in their portfolios.

Source: 1. International Monetary Fund (2019) China’s Economic Outlook in Six Charts. 2. (2018) Why invest in China?