The world’s biggest advertiser, WPP, remains an ‘unabashed’ bull about China despite slowing growth in the world’s second biggest economy causing market jitters. The group’s chief executive Martin Sorrell, said trading in China had been “weak” in the second quarter compared with the first, although he expects that to rebound in the second half. “The […]
The world’s biggest advertiser, WPP, remains an ‘unabashed’ bull about China despite slowing growth in the world’s second biggest economy causing market jitters.
The group’s chief executive Martin Sorrell, said trading in China had been “weak” in the second quarter compared with the first, although he expects that to rebound in the second half.
“The growth rate in China has clearly been affected by what is going on, irrespective of the stock market, underlying growth has been affected,” he told Reuters, in regards to the Chinese stock crash which has unnerved global markets.
He still calls himself an “unabashed bull” on China.
He added that Chinese economic growth was fundamental to the company’s future.
“China has been the biggest driver of the world economy,” he said.
Despite the recent reports of slowing economic growth in the world’s second-largest economy, Sir Martin pointed out how far China had come.
“They ain’t done too bad with a five-year planned economy since 1985,” he said, adding that China’s prospects needed to be seen in the light of “30 years of growth and expansion and the hundreds of millions of people that have been taken out of poverty and moved into a lower-middle or middle class”.
While China is WPP’s third-biggest market, the US is the firm’s biggest.
In its latest update, the company, led by Sir Martin Sorrell, said business leaders are cautious about a number of geopolitical issues, including the possibility that Britain could break from the European Union and the potential for a “Grexit”, even though Greece has secured a new €86bn rescue package from its creditors.
