4 Fastest Growing Sectors in China

The World Bank’s China Economic Update (June 2014) predicts that China’s growth will moderate over the medium term as the economy continues to rebalance gradually. Growth is expected to slow to 7.6% in 2014, and 7.5% in 2015, from 7.7% in 2013.
 

However, there is still ample evidence to show that China remains one of the world's most dynamic markets. Here are a few sectors that are poised for swift growth in the next decade:
 

e-Commerce

  • 618m online population in China – 12 times that of the UK and double that of the US. There are now 302m “e-shoppers” in China
  • $6 out of every $10 dollars online spend in Asia is from China
  • 70% purchase on mobile in China, compared to 46% in the US 


Healthcare

  • $1 trillion healthcare spend by 2020, up from $357b in 2011

  • 34% of China’s population will be over the age of 60 by 2050, up from current 12% (185m) 

  • World's 2nd largest market by 2016


Infrastructure

  • 20% of the world's population in China but China has just 5.6% of its roads
  • $322b will be invested in Smart City by 2025

  • Infrastructure's accounted for 8.5% of China's GDP 
     

Clean Energy

  • No. 1 in the world’s clean energy investment ($67.7b) responsible for almost 1/5 of total global investment

  • 20% of energy will be from renewable source by 2020

  • Largest wind resources in the world. 3/4 of its wind farms are offshore

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Sources: UN Report, McKinsey & Co, China Internet Network Information Center, KPMG

Carol Chan

London