Chinese slowdown could impact global growth by 0.2%. After receiving the all-clear for new science and technology green stock list, Shanghai closed up 0.41%. Next March the National People's Congress could set the economic growth goal between 6% and 6.5% for the year.
According to Capital Economics financial analysts, even though Beijing experienced a similar situation in 2015-16 this time around the economic slowdown came with some major differences –in particular a lower downward pressure on yuan and no visible capital outflows. Overall, they play as tell-tale indicators of global growth trends.
"Given how other economies seem to be gripped in the vice of their own concerns, China’s current weakness is a tell-tale sign of an oncoming, and rather serious, global slowdown," they specified. "Since Beijing makes up for 19% of the world's economy, this year’s slowdown against 2018 results will affect global growth by 0.2%," they added on.
China made it out of 2018 with a GDP growth of about 6.6% –going at a slower pace than in the 90s, yet completely aligned with the goals set by the government last spring. This data must be read side to side with 2017 GDP downward revision from 6.9% to 6.8%. Financial analysts' predictions for 2019 point out the risk for further economic stalling, and some experts have come to expect the National People's Congress to set its growth goal for the year between 6% and 6.5%.
Yesterday, during a meeting in the White House, Trump explained that US trade talks with China are proceeding well, and that "China very much wants to make a deal".
Meanwhile the Chinese stock market closed stronger, profiting from the all-clear received on the new science and technology green stock list by regulators; Shanghai Composite closed up 0.41%, reaching 2,591.69 points.
(Source:Class Editori)
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