Of the top three sectors of growth in the Chinese economy, the fastest growing is Information Technology and Telecommunications and the third fastest growth rate is online retailing. Finance has the next fastest rate of growth of 6.9% for the year to September. This is followed by an Australian favourite of accommodation and restaurants, which grew at 6.7%.
Interestingly what we see is that all the fastest growing areas of the Chinese economy are no longer in the manufacturing sector. They are all in the services sector. Some of those services are extremely highly developed.
Conclusion
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With a GDP of just under US$14 trillion, the Chinese economy is massive. The growth in this economy is no longer coming from the manufacturing sector but from the services sector.
Services sector growth of 7.2% per annum suggests that China will continue a solid growth performance for years to come.
This article was first published by Morgans.
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