UBS On-Air: Paul Donovan Daily Audio 'Does growth spill over?'

China’s government announced a GDP growth target of around 5%, which is less ambitious than had been expected. Some academic estimates suggest that China’s economy is around two-thirds its reported size—so if a lower growth estimate reflects a more realistic target, increased realism will not change underlying reality. If China’s growth is focused on domestic consumption of services, there is less spillover to the rest of the world.