Deloitte Touche Tohmatsu’s director of Asia-Pacific manufacturing, Kevin Gromley is predicting a drop in demand following the Beijing Olympics.

“Over time, this will shift and domestic consumption is going to become a bigger and bigger piece of the economy,” Mr Gromley told BusinessDay. “But, while that transition happens, there is a risk that over-investment in infrastructure will cause a bubble effect, particularly after the Beijing Olympics.”

It’s no secret that the Chinese economy has been booming the last couple of years and there is a chance that the bubble will pop some time in the future. Gromley’s comments could have meaning in the industrial sector of the Chinese economy, but China should see some uplift in foreign investment and tourism sector following the Olympic Games.

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