Chinese Slowdown Is Part Of Restructuring Figures show that China’s economy is gradually moving towards a slowdown, as this trend is noted clearly by recent economic data. And economic growth shrank slightly from an annual rate of 7 percent to 6.9 percent, the lowest level since 2009, but still higher than expected. As industrial production growth also remained in steady decline, a decline from 10 percent two years ago to 5.7 percent in September (last September). As well as the case of investment, which was a growth of historical sources, it is slowing down in the clear in the form of fixed assets investment from 20.2 percent to 10.3 percent in the same period.
According to the weekly analysis of emerging markets in Asia, issued by the company «Asia Investment», some other indicators takes a different turn, as the acceleration of retail sales growth similar to the growth of consumption, which is accelerating somewhat in the past months. Chinese also took the overall improvement in trade performance under difficult and weak international trading environment.
Currently, incentives monetary and fiscal Chinese authorities seem effective, as it cut «People’s Bank» China (the central bank) interest rates on lending and deposit rates to encourage credit several times in 2014 and 2015, most recently on 23 of this month. And reduce the «Central» Also, the mandatory reserves of banks for the same Secret To Success Review goal.
The report, prepared by Camille Accad, that some evidence indicates that these measures promote economic activity, such as lowering interest rates between banks and promote the latest financial indicators. Also, loans) increased more than 17 percent from January (January to September, compared to the same period last year to reach about 9 trillion yuan ($ 1.4 trillion) this year. And contributed to the strong lending in stabilizing the real estate market in terms of construction projects and prices, and to promote consumption growth evidenced by the growing consumer loans. And also it remained supportive of financial incentives this year, with the large increase in public spending and the deficit, which contributed to the economic growth and stability.
The report also pointed out that the indicators evolution in the short term, reflecting the ongoing economic restructuring slow process, but at a steady pace, and the promotion of relevant consumption and the relative weakness of the industrial sector indicators are a reflection of the shift gradually to one based on consumption with the service sector economy.
And gaining share services and contribute to the more than four percentage points in growth, as a record formed by more than 50 percent of GDP. In contrast, the share of final consumption to GDP recorded a positive development in the past five years, what contributes to about half of economic growth, finally, which represents 51 percent of GDP.
The authors believe that the intensive model to invest in China is shifting towards consumption, and part of that is due to shrinking revenues, and the other part to that the main objective of the accumulation of capital is high consumption. This change in the economic model is one of the reasons that led to the moderation in economic growth in China in recent years.
«Asia Investment» report believes that the Chinese authorities are driving the economy in the period minute changes, the most important characteristics that the Chinese economy is in dire need of balancing. And the need to support Chinese slowdown by providing the necessary incentives without the aggravation of some imbalances that can lead to a sharp fall. China’s economy also needs structural reforms will have disastrous effects in the short term in some of the events, but will set the foundations for sustainable economic growth in the future. Secret To Success APP
Despite the importance of the stimulus measures of growth in the short term, should the Chinese government and the «central bank» not to abandon the long-term strategic measures that would lay the foundation for the Chinese economy based on knowledge and consumption.