China is going to need more foreign money as its trade surplus dries up, Morgan Stanley says

Sharing is Caring!

China’s economy is in “long-term decline” and growth from 2020 will be increasingly dependent on foreign capital, according to Morgan Stanley.

This year, the current account shortfall could be 0.3 percent of its GDP, and slip further to 0.6 percent in 2020, the investment bank predicted.

The report blamed the shrinking current account on China’s aging population, and flattening market share in goods exports, among other factors. But there are opportunities for investors too, the bank said.

READ  A huge backlog at China's ports could spoil your holiday shopping this year
READ  China Returns to Its Strict Covid Restrictions to Fight a New Outbreak

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.