Chinas Economy in 2018 grew at its slowest since 1990. The economy of China noticed a growth of 6.6 percent in 2018 which is the lowest growth in three decades. In the midst of trade war with the United States which is creating havoc that the slowdown of China’s economic growth may cause danger to the global growth statement by the Guardian.
During the fourth quarter of the year 2018 the world’s second-largest economy noticed a growth of 6.4 percent, the same growth percent was observed at the beginning of 2009 at the time of the global financial crisis.
The government of China is trying to control the high levels of bets due to which the economic growth has lost its strength. China has also started feeling the impact of the trade war with the United stated that has caused new traffics on more than $250 billion of exports related to China.
The growth slowdown has put pressure on the country and wants to reach an agreement with the United States to end the damage caused by the trade war.
The negative impact is noticed of the businesses around the world due to the declining situation of the market which depends upon the growth. It has already scared the investors and issued warnings to top companies including Apple [AAPL].
The Economic growth of China has slowed down to 6.4% in the 4th quarter of 2018 as per the reports to Monday’s Data by the economist speculations.
When the figures have published the Stocks listed in Hong Kong, and Shanghai grew moderately. Investment Bank Mizuho strategist Ken Cheung informed that the data does not indicate that the slowdown of China was worse than the previous opinion.
In 2019 the economic growth is going to drop by 6 percent although many analysts are doubtful about the accuracy of the government data and even say that the growth can be considerably lower.
What More Can Beijing Accomplish?
Many other indicators have also signaled red. Chinese exports in December last year endured a huge decline whereas the annual sales of the car fell in 2018 for the first time in almost 20 years.
In January Beijing made public about the new measures of 1.3 trillion yuan worth that will help to strengthen the economy which will include a reduction in tax amount basically for small businesses and lowering traffic. To maintain the growth rate, it is the latest measure that the government has taken along with boosting infrastructure expenditures and loosening financial policy.
Analysts still question whether the Beijing measures are sufficient enough to tackle the economic condition of the country and will it help the economy to grow stronger in the days to come. Meanwhile, there are warnings that things can even become worse.
To end the trade issues, Beijing and Washington both are negotiating, although unsure whether they will reach a deal to end the dispute. If in-case they don’t then there could be more problems punishing traffic loom. As per Louis Kuijis, the head of Asia Economics at Research Firm Oxford Economics says that there is a huge risk if the Chinese government stimulus measures fail to achieve the desired result.
We hope that the growth will continue to stay under pressure in the months to come. He mentioned it to the clients on Monday.
Chinese officials are still stressing that the economy will stay stable.
The head of China’s Statistics bureau Ning Jizhe informed at a news conference that was held on Monday that the trade war has weighed on the economy yet we are still able to manage the impact of it and is under our control.
The Global situation of 2019 will be very much difficult and also hard, in addition to this he said that the economy of China would move further with stability.