China’s economic growth at three-decade low
Beijing is expected to introduce new stimulus measures
The impact of Beijing’s trade tensions with Washington has been laid bare as new figures showed that China’s economy grew last year at the slowest pace in almost three decades.
Official data show that the world’s second largest economy expanded by 6.1% in 2019 from the year before - the worst figure in 29 years.
Although Beijing has been introducing measures over the past two years in an attempt to boost growth, the BBC says the “country has faced weak domestic demand and the impact of the bitter trade war with the US”.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Marketwatch adds that: “Chinese exporters have been battered by President Donald Trump’s tariff hikes in a fight over Beijing’s technology ambitions and trade surplus”.
Reuters says Chinese policymakers have been “rolling out a stream of growth boosting measures over the past two years, while trying to contain financial and debt risks”.
Although Beijing is now widely anticipated to roll out further stimulus policies, the government is not expected to panic because it had targeted a range of 6% to 6.5% growth for 2019.
Also, as CNN points out, officials went into Friday’s announcement, “with one big issue behind them: Beijing this week signed a ‘phase one’ trade deal with the United States”.
However, Louis Kuijs, from Oxford Economics Hong Kong, predicts choppier waters ahead. “We still think China is in for slowdown later on, it’s in the midst of a structural slowdown. We have stabilisation 2020, but after 2020 we do think there will be more structural slowdown.”
Among the options Beijing is set to introduce is a cut to its one-year loan prime rate, the new benchmark lending rate, by a total of 25 basis points this year.
Asian stocks edged up after the GDP data was released, adding to moderate early gains. The yuan also steadied.
–––––––––––––––––––––––––––––––For a round-up of the most important business stories and tips for the week’s best shares - try The Week magazine. Start your trial subscription today –––––––––––––––––––––––––––––––
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
The Pentagon faces an uncertain future with Trump
Talking Point The president-elect has nominated conservative commentator Pete Hegseth to lead the Defense Department
By Justin Klawans, The Week US Published
-
This is what you should know about State Department travel advisories and warnings
In Depth Stay safe on your international adventures
By Catherine Garcia, The Week US Published
-
'All Tyson-Paul promised was spectacle and, in the end, that's all we got'
Instant Opinion Opinion, comment and editorials of the day
By Justin Klawans, The Week US Published
-
Labour shortages: the ‘most urgent problem’ facing the UK economy right now
Speed Read Britain is currently in the grip of an ‘employment crisis’
By The Week Staff Published
-
Will the energy war hurt Europe more than Russia?
Speed Read European Commission proposes a total ban on Russian oil
By The Week Staff Published
-
Will Elon Musk manage to take over Twitter?
Speed Read The world’s richest man has launched a hostile takeover bid worth $43bn
By The Week Staff Last updated
-
Shoppers urged not to buy into dodgy Black Friday deals
Speed Read Consumer watchdog says better prices can be had on most of the so-called bargain offers
By The Week Staff Published
-
Ryanair: readying for departure from London
Speed Read Plans to delist Ryanair from the London Stock Exchange could spell ‘another blow’ to the ‘dwindling’ London market
By The Week Staff Published
-
Out of fashion: Asos ‘curse’ has struck again
Speed Read Share price tumbles following the departure of CEO Nick Beighton
By The Week Staff Published
-
Universal Music’s blockbuster listing: don’t stop me now…
Speed Read Investors are betting heavily that the ‘boom in music streaming’, which has transformed Universal’s fortunes, ‘still has a long way to go’
By The Week Staff Published
-
EasyJet/Wizz: battle for air supremacy
Speed Read ‘Wizz’s cheeky takeover bid will have come as a blow to the corporate ego’
By The Week Staff Published