Global Economic Outlook 2022

Table 1[1] displays the real GDP growth rate and inflation rate for the selected regions. China displays much higher real GDP growth compare with developed countries. I expect the trend will remain the same for the next 10 years but converge to OECD level gradually. Therefore, the nominal growth rate 3% for terminal period is implemented in the valuation for NIO since China is expected to be the main battle for NIO. I have noticed that it is a little bit conservative since it is lower than the average rate of United States and Euro area.  Too much uncertainties, e.g., Ukraine war, the increasing intensity between China and United States and the extremely low birthrate in China have emerged recently and thus the conservative figure is preferred.

Table 1 Real GDP growth rate and inflation

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[1] https://read.oecd-ilibrary.org/economics/oecd-economic-outlook-volume-2021-issue-2_47d846c1-en#page3