Friday, January 20, 2017

The chinese economy grew 6.7%, the slowest pace – the Observer

The chinese economy grew 6.7%, in 2016, the slower pace of the last 26 years, at a time that Donald Trump, who takes office in Washington, dc, this Friday, threatening to unleash a trade war with the asian country.

Trump has promised to rise the tariffs on the chinese products, putting pressure on the industries that employ millions of people in China.

The public spending and the rise in prices for real estate have allowed the world’s second largest economy to grow 6.8% in the last quarter of 2016, in homologous terms, the most a tenth of that recorded in the three quarters preceding (6,7%).

In the computation of 2016, the Gross Domestic Product (GDP) of the country in east asia expanded 6.7 percent – two tenths below the growth in 2015, from 6.9%.

this is the worst performance since 1990 (3.9 percent), but in line with the predictions of Beijing, which was the goal 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, expressed confidence, this Friday.

"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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