Economics
China’s Infrastructure Binge Is Set for a Major Slowdown
- Economists surveyed by Bloomberg see pace easing to 12% YoY
- Goldman sees investment shifting to manufacturing gradually
Photographer: Qilai Shen/Bloomberg
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China’s frenzied construction of roads, bridges and subways is set for a major slowdown, adding a headwind to economic growth in 2018.
The nation’s fixed-asset investment in infrastructure will grow 12 percent next year, according to the median estimate in a Bloomberg survey, down from almost 20 percent in the first ten months this year. All 18 economists in the survey anticipated a moderation, adding to reports by Morgan Stanley, Goldman Sachs Group Inc. and UBS Group AG predicting a similar trend.