Analysis of Global Power Market
Analysis of Macro Economy in China
Fixed Asset Investment
RMB Trillion
Fixed Asset Investment*, China,
2013-2023E
Highlights
100
90
90
80
60
70
70
CAGR: 6.0%
80.2
75.7
CAGR: 7.8%
71.4
67.4
63.2 63.6
59.7
55.2
50.1
50
43.6
60
50
40
40
30
30
20
20
10
0
85.1
2013 2014 2015 2016 2017 2018 2019E 2020E 2021E 2022 2023E
Driven by the upgrade of the industrial sectors,
intelligent manufacturing and the vigorous
development of the services industry, China's fixed
asset investment increased from RMB 43.6 trillion in
2013 to RMB 63.6 trillion in 2018, representing a
CAGR of 7.8%. It is expected to increase further to
RMB 85.1 trillion in 2023, with a CAGR of 6.0%
from 2018 to 2023. The increase in fixed asset
investment has also boosted China's power
consumption.
➤ Fixed asset investment has a long-term stable
correlation with economic growth. The cooling down
of China's growth rate in fixed asset investment
further reflects a combination of earlier efforts to
deleverage the economy, tighten environmental
controls and reduce excessive capacity in heavy-
asset industry.
➤ According to the NDRC, 189 fixed asset investment
projects have been approved in 2018, covering
power industry, transportation system, high-tech
industry and etc.. The fixed asset investment will
potentially resume a growth momentum in 2019 and
is anticipated to continue growing driven by steady
growth of real estate investment and investment in
infrastructures.
* Fixed asset investment includes investments in physical assets such as machinery,
land, buildings, installations, vehicles, etc.
FROST
& SULLIVAN
Source: NBS, Frost & Sullivan
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