18 April 2013 15:13 [Source: ICIS news]
SHANGHAI (ICIS)--China’s petrochemical industry growth is forecast to grow at 9-10% in 2013 if the country’s GDP growth rate for the year hovers around 7.5-8.0%, domestic consumer spending keeps rising on the back of massive urbanisation and the middle class grows, a senior executive of KPMG Shanghai said on Thursday.
Chinese specialty chemicals would grow faster than commodities, and consumer-related chemicals would grow rapidly because the Chinese government was focused on increasing domestic consumption, said Norbert Meyring, a Partner at KPMG Shanghai.
Meyring was speaking at the 7th China Petrochemical Forum, a two-day conference which ends on Friday.
Chinese state-backed chemical entities were likely to become more active acquirers of foreign assets as they sought technology to support their downstream expansions, said Meyring.
China’s petrochemical capacity would increase in 2013 and beyond because the country’s GDP growth would significantly outpace world economic growth in the coming years, he said.
But China’s GDP growth was expected to slow down to around 6% in the mid-to-long term as a result of demographic changes, reduced exports because of a stronger Chinese yuan, and rising labour costs, he added.
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