Friday, January 20, 2017

China grows at the slowest pace of the last 26 years – Jornal de Negócios – Portugal

In the fourth quarter of last year, the Gross Domestic Product (GDP) of the asian giant has accelerated slightly, to expand 6.8% in annual terms homologous, more a tenth of that recorded in the three quarters preceding (6,7%).

this is the first time in two years that the chinese economy speeds up between quarters, and the growth registered in the last three months was higher than expected, since economists estimated a growth of 6.7% in the fourth quarter and for the full year.

The slight acceleration of the economy was driven by the increase of public expenditures and of credit to the economy.

The expenses of the families also gave a help, since the real estate investment has increased by 11.1% in December and retail sales rose at the fastest rate of the year.

Despite having grown at the slowest pace since 1990 (3.9 percent), the performance of China’s economy in the computation of 2016 — two tenths below the growth in 2015 (to 6.9%) – is in line with the forecasts of the Government, since Beijing was the target of annual growth between 6.5% and 7%.

“It’s a growth slightly higher than expected, but that does not change the trend” of slowing down, said Bill Adams, analyst consultant at PNC Financial Services Group, in a report.

After three decades to grow an average of almost ten percent a year, the chinese economy has slowed in recent years, to the extent that Beijing engage in a transition in the economic model, aiming to transform the internal consumption in the main engine of growth.

A significant increase in public spending and rising housing prices have helped to offset the drop of 7.7% in exports, but economists predict that the economy will continue to slow down.

“The recovery is not expected to continue in 2017,” wrote Tom Rafferty, an economist at the unit of analysis from the Economist Intelligence Group.

The export industries will suffer greater pressure in case Trump meets with the promise to increase taxes on the chinese goods, leading to a rise in unemployment, which may affect the social stability in the asian country.

A warning is implied to Donald Trump, the chinese President, Xi Jinping, has defended this week the free trade, at the World Economic Forum, in Davos. “A trade war would harm all countries,” said Xi, in Switzerland.

Still, the director of the Office of National Statistics in chinese, Ning Jizhe, today expressed confidence.

“I Hope that, once elected, the President, the Trump consider these matters from a perspective of mutual benefit and of benefit to both sides,” said Ning.

Asked about the potential impact of policies Trump, responsible for the chinese statistics said only that China must maintain a “economic growth medium-high”.


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