China’s economy “languishes
The poor economic data on friday depressed chinese stock markets, demonstrating the challenges facing the second-largest economy ahead of the chinese leadership’s annual economic conference next week in beijing.
At 8.1 percent year-on-year, retail growth fell to its lowest level in 15 years, according to the news agency bloomberg. Industrial production also grew by only 5.4 percent – the slowest rate in ten years. This allowed the economic growth at the end of the year to fall below the 6.5 percent in the third quarter.
The bad mood because of the trade war with the USA may have printed the buying mood, according to experts. In november, for example, car sales fell by ten percent and communication equipment sales by 5.9 percent compared to the same period last year, as reported by ANZ bank. Sales of petroleum products also fell sharply, as the statistics office pointed out.
“China”s economy weakens, causing concern for many investors,” a commerzbank analysis said. “A full-blown crisis is unlikely, however.”The government and the central bank have already countered this by reducing taxes and improving the supply of credit. The goal of reducing debt has been postponed for the time being, it continued.
After US president donald trump and china”s state and party leader xi jinping met on 1. After the g20 summit of economic powers in buenos aires on december, the negotiators agreed to a “ceasefire” in their trade war and now have 90 days to find a solution. There have been initial discussions, but so far no indication of when or where the two sides will meet for negotiations.
In response to the poor economic data, the composite index on the shanghai stock exchange fell 1.53 percent, while the component index in shenzhen fell 2.28 percent. Other asian markets in tokyo, hong kong or seoul also slid sharply into the red.
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