Top Chinese economists are optimistic about the country's economy. They shared insights about future growth, stating that increased consumption is a key driving factor to push the economy up.
On Wednesday, Tencent's fintech think tank unveiled the results of a report based on the insights of 103 chief economists who work under security trade firms. The survey also included university professors and organizational analysts.
According to China Daily, around 45 percent of the participants pointed at increased consumption as the major driving power that will further improve the Chinese economy in the next ten years.
31 percent of the interviewees, on the other hand, noted that the new economy or Internet-based businesses will contribute largely to the growth that China's markets is expected to undergo in the next decade or so.
Shen Minggao, the chief economist at GF Securities, said of the Chinese economy, "The driver of high-speed economic growth is export and investment, but as we are transforming to a high-quality development model, consumption plays a more important role."
In his speech, Shen explained that while export and investment were two of the major economic drivers over the past years, these sectors are expected to decline this year by 5 percent.
Fan Gang, president of the China Development Institute, agreed with Shen's views. He said consumption levels are introducing new chapters "which will also push the emergence of new industries, such as care for the elderly and leisure activities."
China's new economy, or services and products within the online realm, is another aspect that many analysts believe will help the country recover from the current decline.
Beijing has since been working to revamp the Chinese economy. From industrial-centered drivers, the government is now focusing on a services-based economy that is backed by some of China's largest Internet firms including Baidu Inc. and Alibaba Group Holding Ltd.
Affin Hwang Asset Management Bhd (AHAM) managing director, Teng Chee Wai, said the reforms will open "a new set of opportunities" that capitalize on quality Chinese economic growth, The Edge Markets reported.
Teng pointed out that the manufacturing sector is showing signs of a slowdown. This decline is generally attributed to the ongoing trade spat between China and the United States.
Nevertheless, Chinese economists are positive about the effects of higher consumption levels and the new economy. They believe the government's joint efforts with online tech giants will spur a new era of goal-driven service providers that will help the country avoid extreme economic setbacks.
