You are here: Home > articles > Forex > China’s growth will slow in 2019 and threatens the financial world
China’s growth will slow in 2019 and threatens the financial world
January 18, 2019 5:21 amVideo
Latest News
- Video market update for April 23, 2024 April 23, 2024
- Trading Signals for EUR/USD for April 23-25, 2024: buy above 1.0681 (21 SMA – 3/8 Murray) April 23, 2024
- Analysis for the EUR/USD pair on April 23rd. Euro currency prepares for another decline April 23, 2024
- Analysis for the GBP/USD pair on April 23rd. Sellers failed to take the mark of 1.2313 on the first attempt April 23, 2024
- Technical Analysis – AUDUSD gears up after disappointing US PMIs April 23, 2024
- Technical Analysis – Meta stock falls below 50-SMA ahead of earnings April 23, 2024
- USD/JPY: Simple trading tips for novice traders on April 23rd (US session) April 23, 2024
- GBP/USD: Simple trading tips for novice traders on April 23rd (US session) April 23, 2024
- Technical Analysis – USDJPY fights with new 34-year high April 23, 2024
- EUR/USD: Simple trading tips for novice traders on April 23rd (US session) April 23, 2024
- Alphabet Q1 Earnings: Strong ad business but AI initiatives lag – Stock Markets April 23, 2024
- GBP/USD: trading plan for the US session on April 23rd (analysis of morning deals). The pound continues to decline April 23, 2024
- EUR/USD: trading plan for the US session on April 23rd (analysis of morning deals). The euro has shown rapid growth April 23, 2024
- EUR/USD. April 23rd. Bulls and bears are in balance April 23, 2024
- GBP/USD. April 23rd. The bears continue to attack April 23, 2024
- Gold edges lower as Middle East tensions ease April 23, 2024
- Slightly lower volatility across the board ahead of key US data – Volatility Watch April 23, 2024
- Technical Analysis – UK 100 index hits new all-time highs but rally may be cooling April 23, 2024
- XM Teams up with ‘Charity Right’ for Change April 23, 2024
- Technical Analysis – US 500 index rebounds off 2-month low below 5,000 April 23, 2024
China’s economy is expected to continue to slow down this year particularly on domestic demand and exports affected by US tariffs. Beijing will most likely have to deploy additional incentive measures.
According to forecasts, China’s economic growth will slow to 6.3 percent this year and will be the weakest in 29 years. A significant slowdown in growth in China has already been observed. The resumption of negotiations between the United States and China has increased optimism that Washington may agree to suspend the planned tariff increase, which was originally scheduled to take effect this month. However, a comprehensive agreement to end the dispute seems unlikely, given the number of highly controversial and politically sensitive issues. Even if both sides can conclude a long-term trade deal, it will provide only minor relief to the Chinese economy if Beijing cannot increase domestic investment and demand.
Sources said that China plans to lower its target for economic growth between 6 to 6.5 percent this year. Weak industrial growth and lower consumer spending reduce company profits. Moreover, it also discourages new investment and increases the risk of high job losses. Since earlier growth measures had little impact, we expect Beijing to deploy more incentives in the coming months to prevent a sharp slowdown. More large-scale tax cuts are expected, along with measures to increase consumer demand for products such as household appliances and cars. Both fiscal and monetary policies eased over the past few months and this should begin to spread to the real economy by the second half of this year.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: