China is seeing a fall in its economic growth, is this the start of their downfall or just a minor slip up.
China’s economy is seeing its weakest pace in about three decades.The 6.2% figure released by the National Bureau of Statistics was in line with a survey of analysts by AFP and down from a 6.4 % expansion in the first quarter.
While the Gross Domestic Product figure is in line with the government’s target of 6-6.5%, it is quite a fall from last years 6.6% growth rate. The GDP in the first half of the year was 450.933 billion yuan.
However, there has been an increase in many other parts of their economy. For instance, industrial output rose to 6.3% in June, from 5.0% in May, yet it was the slowest increase since 2002. Fixed-asset investment also picked up, rising 5.8% on-year in January-June, from 5.6% in January-May.
Although sales of big-ticket items such as cars have not held up, though, with sales down 12.4% in the first half of the year, according to the China Association of Automobile Manufacturers.
Due to the slowing economy, China cannot even fight back the US against its tariffs to open Beijing’s economy.
The trade war with the US has hit China’s economy, compounding a global slowdown. The two countries have slapped each other with several punitive tariffs of approximately$300 billion. There is damage to both sides.
China’s exports to the US dropped more than 8% over the first half of the year.
Beijing has introduced many measures this year to help the economy, however, were not able to boost the economy. The measures have not been effective enough to offset a domestic slowdown and softening overseas demand.
Again because of the trade war with the US and they are in a dilemma. Beijing will have to come to a conclusion on how the fix this trade war with the US. It seems that in amidst of it China’s economy is suffering the consequences.
Due to which it is expected that Beijing will step up to support its failing economy from collapsing any further. Now it depends on how quickly action is taken to save the slowing economy.