Economic slowdown in China Go back »
2019-01-02 | Beijing
In China, economic growth slowed to 6.6% in 2018.
This growth figure was published last week. The authorities also revised down the growth rate to 6.8% for 2017. But most activity indicators have highlighted that the slowdown has already been underway since mid-2017.
Domestic demand growth has weakened, mostly because of the restructuring process in the industry and due to economic policy tightening. As a matter of fact, from late 2016 to the spring 2018, the authorities tightened monetary policy, property policy and, most importantly, strengthened financial-sector regulation.
All this has led to a decline in financial-instability risks. But it has also led to slower domestic credit growth and weaker investment.
Private consumption growth also slowed last year. Chinese households experienced a new period of income growth moderation. This has obviously been a consequence of the difficulties of the manufacturing industry.
These difficulties have worsened recently. Exports have started to feel the impact of US protectionist measures. Exports lost steam in November and contracted in December.
For more information, please visit the source website below.
Source: BNP Paribas
