China’s gross domestic product has risen in the past year, the lowest since 28 years. This is evident from data of the national Bureau of statistics, published by the authority this Monday. Accordingly, the second-largest economy in the world grew by 6.6 per cent and was thus above the government’s forecast of 6.5 percent, but below the 6.8 percent of the previous year.
The low growth of several underlying causes. The Chinese government’s major infrastructure drove back action, the high state to curb the debt. “The mood in the country has changed fundamentally,” said Max Zenglein, head of the economic programme at the China Institute Merics. Do both in a greater reluctance on the part of consumers as well as on the part of private companies, which have invested less.
second, China is in a trade conflict with the United States, in which a further escalation threatens, should both States until 1. March. “The trade war, at present, especially in a growing uncertainty noticeable,” says Merics Economist Zenglein. Weakening exports and investment had already been on the growth. “Seriously, it should be but only, if there is to March, no solution, and there are further tariff increases.”
investors and analysts fear that the slowdown in the people’s Republic draws the entire world economy. The export-dependent German economy could suffer, especially the German car manufacturers.
However, the KP had announced the Regime in Beijing already counter-measures – mainly tax cuts for households and businesses. Experts expect further economic support to the government. “It will give additional impetus,” said analyst Christy Tan at National Australia Bank in Singapore. “It is not the time for complacency.”
According to the Reuters news Agency, the Chinese government will spend for the current year, a lower growth target. Is sought, therefore, a margin of 6.0 to 6.5 percent. Analysts expect, on average, a slowdown to 6.3 per cent.