Remember those days, not so long ago...

"Remember those days, not so long ago, when the majority of professionals in this industry resorted to that cliché that China had to change its growth model to a new one, more based on domestic consumption, if it wanted to aim for sustainable growth?

Ok. Let me tell you this. I have just read a report from Standard & Poor's saying that China is expected to overtake the US to become the world's largest domestic consumer market in the next five years. Yes, a very short period of time. Even shorter than I could imagine.

The implications are very clear in terms of business penetration, foreign direct investment, portfolio investment, currency trade, regional growth, etc...

The report pointed out that in 2012, total retail sales of consumer goods in China grew 14.3% to about $3.29T, compared with $4.35T in the more mature market of the US. Compare the pace of change in those volumes and ... You will understand the initial assertion.

My question, as a long term advocate of Asia as a global economic engine and a factor of influence in financial markets, is: What excuse are the usual harriers going to invent now to turn their face to the evidence and continue feeding its ridiculous regionalist vision?

The report also noted that China's retail and consumer product industries are refining their growth strategies, adding that overseas acquisitions are attractive options for Chinese consumer companies to improve product quality, increase differentiation and acquire better brands. In short, also represents a big external impact.

Thus, please flee from those addressing regional crises only from a regional perspective.

I consider this information as relevant in the configuration of our structural view

Best

Àlex Fusté

Chief Economist

Andbank