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China's economy grows unexpectedly quickly

The growth compared to the last quarter of last year, surprisingly stable. Experts had expected in the first three months of this year due to the negative impac

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China's economy grows unexpectedly quickly

The growth compared to the last quarter of last year, surprisingly stable. Experts had expected in the first three months of this year due to the negative impact of the trade war with the USA and other uncertainties, slower growth.

But the tax cuts and other measures by the Chinese government to stimulate the economy. The emissions in the industry in March unexpectedly, and the in-store tills ringing more than in February. Thus, the industrial production increased in the first quarter by 6.5 percent compared to the same period last year. Retail sales rose by 8.3 percent. The fixed capital investment, i.e., expenditure including machinery, real estate or infrastructure, grew by 6.3 per cent.

a strong growth in China benefited the German economy, which exports a lot to China and the Chinese market is engaged. "The economy is better," said the independent Chinese expert Ye Tan. "The stock market and the real estate market to develop well. Add to that the loose monetary policy. All of these measures to boost consumption." The prospects are not bad: "There are no signs that the economic development deteriorated this year."

debt load

The growth not is also within the scope of the specification of the government's 6.0 to 6.5 percent for this year, which is as slow as in almost three decades. Previously, however, there was other encouraging economic data, so that the monetary Fund (IMF) had revised its forecast for China this year, most recently from 6.2 to 6.3 percent.

the organization of The industrial countries (OECD) warned, however, that the stimulus measures in the short term, the growth in China, but in the long run, undermine the efforts to reduce the – also for many large OECD countries-high debt burden and correcting structural distortions.

"The policy should focus on long-term strategies to move the economy towards higher domestic consumption and services, to improve the efficiency of the economy and ensure that future growth is sustainable, green and socially fair", said a statement issued by the OECD, to your new annual report on China.

A quarter of global growth

In the trade conflict with the United States could be the steady growth first of all, the negotiating position of China's strengths. However, a Failure of the ongoing talks and a new escalation of the special duties is likely to have serious negative effects, warned the OECD. Including the world economy would suffer even more, as China contributes to a quarter of global growth. The world's two biggest economies have been coated since last year, each other special duties. Meanwhile, around half of all US are charged to imports from China with additional duties. The USA want access to a reduction in the US trade deficit and demand better market, more effective protection against product piracy, and forced technology transfer. The United States also encounter state funding of Chinese firms, which have distorted the market.

there Should be no agreement in the ongoing trade talks, threaten new sanctions. The American special duties on imports from China in the amount of 200 billion U.S. dollars could then be from the current 10 to 25 percent increases.

(step/sda)

Created: 17.04.2019, 09:19 PM

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