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Economic Expectations for China Still Positive
China Economic Panel (CEP) by ZEW and Fudan University
China's current economic situation is also seen optimistic by the surveyed experts. Every second survey participant continues to assess China's current economic state as "normal". The share of optimists (31 per cent) noticeably exceeds the share of pessimists, represented by a group of 11.3 percent of analysts. This results in a balance of 12.7 points, which remains more optimistic than the balance for the Eurozone (minus 13.4 points).
The expectations for the GDP growth rate in China are projected at 7.6 percent in 2013 and 7.5 percent in 2014. During the next twelve months, 85.2 percent of the experts expect foreign direct investments of Chinese investors to grow further. For the same time horizon, the results show a continuing strong increase of companies' turnovers for all economic sectors, except the steel/metal sector (due to large overstocks) and the machinery/engineering sector, which is still suffering from weak demand caused by the world economic crisis.
"Financial market analysts expect the highest growth rate within China for the Shanghai region. The recently launched free trade zone there will increasingly attract foreign companies. They can profit from extensive liberalization as for example reduced business tax rates which are reduced from 25 to 15 percent", says Dr. Gunnar Lang, deputy head of ZEW's Research Department "International Finance and Financial Management".
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