KPMG: China Outlook 2015

KPMG’s Global China Practice released a new report – China Outlook 2015. The report provides analysis and commentary on China’s economy, outward direct investment (ODI) and foreign direct investment (FDI) in 2014, and offers a closer look at the industry sectors where we identified emerging trends and opportunities. The report also provides our outlook for 2015.

Key findings
China’s GDP grew by 7.4 percent in 2014, close to the government’s target of 7.5 percent. Meanwhile, as we discussed in our 2014 third quarter China Quarterly Report, the service sector has become increasingly important as a driver of the economy, accounting for 48.2 percent of China’s economic output in 2014, up by 1.3 percentage points compared with 2013.

In 2014, China’s ODI entered a new stage, with more Chinese companies investing in more industries in more countries. ODI in 2014 reached an estimated US$120 billion, a double-digit increase over 2013.

China’s FDI increased to a record US$119.6 billion, up by 1.7 percent year-on-year. In addition, FDI growth in the service sector grew 7.8 percent in 2014, whereas the manufacturing FDI witnessed a double-digit decline.

The report also provides detailed analysis of trends in key sectors such as real estate and infrastructure, and provides forecasts for 2015.

To access the report click here.