China’s Economic Growth Hits 30-Year Low
World’s second largest economy China has suffered slow growth of 6.1% in 2019 which is the lowest growth figure the country has experienced in the last 29 years.
The growth can be linked to the impact of the trade war between the country and the United States where the US imposed $360 billion on China’s import in the country, in addition to the country’s weak domestic demand.
In other to ease the slow growth, the government has combined several measures which includes tax cuts and allowing local governments to sell large amounts of bonds to fund their infrastructure programmes.
China has also encouraged local banks to lend mostly to small firms, with the loan rate currently hitting a record high at $2.44 trillion in 2019.
China’s economy expanded highest in the first decade of the 21st Century seeing double-digit percentage growth.
However, the 6.1% growth rate of the Chinese economy is much higher than other leading economies in the world.
US, central bank has forecast that the American economy will grow by around 2.2% in 2020 which is 3.9% lower than the growth recorded by China.
The 6.1% GDP figure for 2019 is within the Chinese government target range, as Chinese policy makers have been trying to step down expectations on the economy.