China’s weaker growth sending ripple-effects into dependent markets

Structural economic issues and demographics will dampen future Chinese consumption and reduce the attractiveness of the country as a market and destination for investment, according to Patrick Artus, chief economist at Natixis, a French investment bank with a network of offices in Asia.

“Domestic demand will increase very little or even stagnate in China, owing to population ageing, rising household savings as a precaution against a weak pension system, and declining housing and corporate investment,” Artus said.

In a recently issued research report, Natixis listed countries which it saw as most impacted by weaker Chinese growth. Topping the list were ...

Photo courtesy of Groupe BPCE