China is growing as slowly as 30 years ago

China's economy is no longer growing as slowly as for almost three decades. Against the Background of a trade war with the United States and home-made problems, the second-largest economy last year reached a growth of 6.6 per cent.

announced As the statistics office on Monday in Beijing, fell to the quarterly growth by the end of 2018, compared to the same period last year to just 6.4 percent, similar to slowly, the last of them in 2009, after the outbreak of the global financial crisis. 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 is escalating the war with the United States, or an agreement can be found.

"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, China will have a period of up to 1. March set and threaten with a lack of kindness with a further escalation. US 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.

government in Beijing is "concerned"

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 are planned." In the new year is only a 6.0 to 6.5 percent might be set as a growth target.

Not only the trade of war is weighing on the economy. Experts also refer to the fight against excessive credit growth and other factors. "The mood in the country has changed fundamentally," says Merics Economist Zenglein. Do both in a greater reluctance on the part of consumers as well as on the part of private companies, which have invested less.

just last week, China's Bureau of statistics had revised the growth figure for 2017, according to new calculations retrospectively from 6.9 to 6.8 percent. The economy, compensate for weakness, engages China more to old methods. Were already announced massive new investments in infrastructure, such as the Expansion of the railway, as well as tax relief for households and businesses.

wage Stagnation

The Communist leadership is particularly concerned about the labour market in which wages rise more slowly. Companies hesitate, but also for new hires. Experts argue that the trade war the weaknesses of the economy open, which is highly influenced by high debt and the construction boom. On the highly speculative real estate market, every fifth apartment is available, but according to Reports empty.

experts also pointed out that there is a contradiction between the growing state control of the economy and the need to create a decentralised and consumer-driven economic system, in order to achieve sustainable growth. Foreign companies complain that long-awaited reforms, which should give the market a bigger role, have not yet been implemented. (chk/sda)

Created: 21.01.2019, 05:13 PM