How will China’s economic downturn impact the wider sporting world?
- There’s no doubt China’s economy is slowing down, the question now is how fast and how much?
- The sporting world took a big hit during the 2007-08 financial crisis, and could provide clues as to how it might be impacted in 2019 and beyond
China’s economic slowdown has begun.
The World Bank cut its growth projection for the world’s second largest economy for 2019, mostly due to weak exports and subsequent projections, tied to the larger trade war with the United States.
Whether this kick starts another massive global downturn like we saw during the 2007-08 financial crisis is another topic, but even China’s economy taking its foot off the gas in 2019 will have a multitude of impacts, rippling across various industries.
Professor Xiang Songzuo, from the Renmin University of China in Beijing noted in a speech, which went viral last month, that he read two internal reports, one saying China’s real growth was only 1.67 per cent and the other showing China was actually in economic recession. Xiang has not been heard from since.
Real estate is expected to slow, credit is expected to be less readily available and consumers will potentially clamp down on spending in China, here in Hong Kong, and invariably, all over the world.
The ripple effects of economic recession reach far and wide, so it is only natural the sporting world would take a hit.
Looking at the 2007-08 financial crisis, the sporting world definitely felt the pinch with one industry bleeding out the most – sponsorship.