Saturday, January 18, 2020
The condition of China's economic superpower is down, America breathes a sigh of relief!
In the strategic and economic field, the economic condition of China, which is almost equal to the US, has come down slightly. The statistics of the economic development of the country recently presented by China are shocking. The special thing is that China has presented these figures only when trade-wise between the US and China has ended recently. A trade agreement has been reached between the two countries. In such a situation, America may have breathed a sigh of relief after seeing this report of China's economic development.
Economic growth to lowest level in 30 years
Explain that the trade war between the United States and China has broken the dragon's back. This can be gauged from the fact that China's economic growth in 2019 is at its lowest level in nearly 30 years. This is the slowest rate in China's economy since 1990. China's growth rate for the whole year was 6.1 percent. Earlier, it was 6.6 percent in 2018. Experts consider the ongoing trade war between the US and China as the main reason for this.
Fall of half a year at the end of the year
If you look at the statistics of the National Bureau of Statistics of China, then China's economic growth rate has declined every quarter in a year. It is in falling order in every quarterly report. If it is compared to the year 2018, then this growth rate has come down from 6.5 to 6.0 percent. However, at the beginning of the year it fell by just 0.1 percent. But after this, the process of its fall did not stop and in the last two quarters of the year it reached just 6.0 percent. Thus, a decline of half a percent was recorded at the end of the year.
Half a percent of the commotion created a ruckus
China is one of the fastest economy in the world. China's economic power can be gauged from the fact that America considers Dragon as its rival in the field of trade. Therefore, there is a cold war like situation between the two countries. The trade war between the US and China has been going on since 2018. The sensitivity of the Chinese economy can also be gauged from the fact that a mere half percent fall in the growth rate has created a furore in China. The decline of half a percent in the Chinese economy is also significant.
Prepare a plan to deal with trade wise and recession
Due to the US trade war and the recession in the world, economists expect that China's growth rate is expected to be 5.9 percent this year. To deal with this, China has formulated a new plan for its economic development. This year a target of 6 percent economic growth rate has been set. China has increased spending on its infrastructure to overcome the recession.
Expectations increased after Sino-US Trade Agreement
The trade war between the US and China has been going on for two years. But two days ago there has been a big relief in the trade war between the two countries. The first phase of trade agreement has been reached between the US and China. This led to a spurt in major markets of the world on Wednesday. President Trump and China's Deputy Prime Minister Liu He signed the agreement at the US White House. Following the deal, the World Stock Index climbed in early trade. It registered an increase of 0.04 percent. Shares of Asia-Pacific countries including Japan also gained 0.21 per cent. Nikkei of Japan also rose by 0.14 per cent. Talking about the Indian stock market, the Sensex strengthened to 130 points in early trading on Thursday and crossed the psychological level of 42 thousand.
Investment in real estate increased, signal for good target
Real estate investment grew by 9.9 percent a year ago in 2019, slightly slower than the 10.2 percent increase in the first 11 months of the year. Beijing is counting on a mix of fiscal and monetary moves for the current recession season, cutting taxes and allowing local governments to sell huge amounts of bonds for infrastructure projects.