IMF has recently upgraded its estimate for China’s growth in 2016 from 6.3% to 6.5% (source: IMF) despite it has lowered its global growth projection from 3.4% to 3.2%. The world’s second largest economy expanded by 6.9% in 2015. Although this was as fast as it has been in the last 25 years, China’s growth is still higher than the US and the euro zone.
It is quite easy to get bogged down in the short-term volatility of the stock markets as it affects global economic confidence. However, one must not overlook the bigger picture that the Chinese economic fundamentals are sound. One strong indicator is China’s outbound investments which have grown steadily over the last decade. China’s overseas direct investment in 2015 in the UK increased three times in deal values in comparison with 2014 and 40% across the EU, according to Grant Thornton.