Chinese growth a boost for mining | Mining Australia:
A UBS economist has tipped a rise in China’s growth rate next year will see the country return to infrastructure investment which is good news for Australia’s resource sector.
The head of China economic research at UBS, Wang Tao, said China’s growth rate would climb up 8 per cent next year as the country looked to invest in infrastructure and property development, The Australian reported.
"I think we all understand that China is not heading for a hard landing," Wang said.
"If anything, if we look at the economic indicators it shows that we're back on a modest recovery path."
Wang said the increase would lead to a higher demand for commodities next year, and in particular steel.
"We are looking for the growth to be led by stronger infrastructure investment but also a modest recovery in property. So that means that even though total fixed investment is not much stronger than this year, they are going to be slightly more commodity intensive," she said.
