China’s economy is no longer growing as slowly as for almost three decades. Against the Background of the trade dispute with the United States and home-made problems, the second-largest economy last year reached a growth of 6.6 per cent compared to the previous year, as the statistics office announced on Monday in Beijing. For Chinese standards it’s very little. Under the economic weakness in China, the export-dependent German economy has to suffer.
The quarterly growth rate fell by the end of 2018, compared to the same period last year to just 6.4 percent. The prospects for the start of the year are unfavorable. The world Bank, and experts expect that growth will fall below 6.5 percent. How strong the brand is exceeded, depends on whether the trade was escalated to the dispute or an agreement can be found.
uncertainty is growing
“The trade war, at present, especially in a growing uncertainty noticeable,” said Max Zenglein, head of the program, the economy at the China Institute Merics. 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.”
The United States and China have a time-limit to 1. March set and threaten with a lack of kindness with a further escalation. President Donald Trump is calling for a greater opening up of the market and an effective fight against the theft of intellectual property and forced technology transfer.
the stimulus measures in planning
China’s growth is the new Figures show that as slow as since 1990 no longer was 2018 but still slightly above the official target of 6.5 percent for the year as a whole. Nevertheless, the government in Beijing is “concerned”, as informed circles reported, all of which were taught by the highest authority on the situation. It will be the stimulus measures were planned to””. In the new year is only a 6.0 to 6.5 percent might be set as a growth target.
However, only the trade war is not slowing down the Chinese economy. Experts also refer to the fight against excessive credit growth and other factors. “The mood in the country has changed fundamentally,” said Max Zenglein, head of the program, the economy at the China Institute Merics. Do both in a greater reluctance on the part of consumers as well as to private enterprises, which have invested less.