Economic growth : China's economy falls to lowest level in three decades

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 compared to the previous year, as the statistics office announced on Monday in Beijing. Under the economic weakness in China, the export-dependent German economy has to suffer.

The quarterly growth rate fell 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.

Video 21.01.2019, 08:48 Uhr01:09 Min.China's economic growth to 28-year Low

"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."

Trump calls for a higher degree of market opening

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.

daily mirror tomorrow location

Overview of the editor Stephan-Andreas Casdorff on the issues of the day from politics and Economics

Free

to order, 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. "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.

German companies are likely to be in the China business in the future. "Although it is to be expected with no dramatic slump in demand for German Goods, however, the German companies will have to adapt to the new realities," says Zenglein. German carmakers, which are heavily dependent on China, have to adjust to the first break-in the largest vehicle market in the world for two decades.

China has announced massive new investments

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.

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.

More about

Minister of Finance Scholz Expansion of financial cooperation with China,

experts agreed and 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. (dpa)