PIMCO: China has been a critical driver of global growth since the financial crisis

PIMCO: China has been a critical driver of global growth since the financial crisis. Slower growth in China means slower growth for the rest of the world. PIMCO predicts Chinese GDP growth to average 6%-7.5% annually for the next five years compared to historic rates of 9%. According to PIMCO, the massive expansion of credit in China has posed real risks to growth. To maintain sustainable GDP growth, China needs to shift from continued reliance on credit-fuelled investment towards household-led domestic demand. The longer the delay in making that transition, the greater the risks of financial stress. (VIEW LINK)