For months economists have feared China would follow the down-ward trend of world economies. But China’s economy seems to be picking up as the country shifts its focus from export and investments to domestic consumption, tell business analyst Shaun Rein in Campaign Asia.
In October came the news that China’s economy had slowed for its seventh consecutive quarter, with its GDP slowing to 7.4 per cent. Overall, adspend increased by 12 per cent between 2011 and 2012, according to ZenithOptimedia, compared to 18 per cent growth between 2010 and 2011.
The impact was not limited to China either, with ZenithOptimedia expecting Australia, New Zealand, Hong Kong, Singapore and South Korea to see “mediocre 2.3 per cent growth” in ad markets in 2012, in part due to the slowdown in trade with China. But Shaun Rein, managing director of CMR, says fears of an economic cooling have been overplayed. He says that while profits were down for a lot of companies, overall, 2012 showed the resilience of Chinese consumers.
“They are still optimistic and still spending,” he says. “Consumer spending has been in the 13-to-15 per cent range. I think overall, the economy is weak, but the consumer side remains strong.”
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