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China's rebalancing to benefit emerging Asian economies says Citigroup

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MANILA, July 17 (Xinhua) -- The rebalancing of China's economy will benefit emerging Asian markets like the Philippines, Thailand and Vietnam, according to a recent study issued Tuesday by the global finance firm Citigroup.

According to Citi, China's plan to shift from an investment- to a consumer-driven economy means Asian countries with low labor cost and strong logistics will benefit as global manufacturers seek new locations.

"Indeed, most of the beneficiaries are likely to be Asian: Thailand, India, Philippines, Vietnam and possibly Indonesia all score reasonably well here," Citi said.

Citi said China's investment spending as a ratio of gross domestic product is nearing its peak. Consumer spending is expected to lead China's economy in the next few years.

Citi added that a more prosperous China will also be a boon to the Asian services sector, specifically tourism as more Chinese travel around the region.

But China may also turn out to be a strong competitor in high- tech manufacturing. The research noted that imported content of Chinese exports had diminished over time: from an average of 42 percent in 2002-06 to 32 percent during the past 12 months.

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