China’s 2019 Economy Starts Steady Growth
China's economy continuously shows growth in 2019. The country exceeded expectations during the first quarter of 2019. China's economy expanded by 6.4 percent higher compared to last year, with the world's second-biggest economy surpassed the forecasts of economists of 6.3 percent.
The global economy expected a slowdown in China's economy due to pressure placed by its competitors. Some expected the tariffs imposed by the United States will greatly affect China's economy.
According to Tai Hui, chief market strategist for Asia-Pacific at investment firm JPMorgan Asset Management, the steady growth confirms that China's economic growth is bottoming out and this momentum is likely to continue going into months ahead.
The statistics released by the Chinese government showed that strong manufacturing production and greater spending by Chinese consumers contributed to the growth in the first three months of the year. The economy of the country experienced slow growth in almost a decade. In recent weeks, market figures showed positive signs that which indicated that indicators like property process and bank lending suggests strength. According to analysts, investors are optimistic that there is a possibility that an agreement on trade issues between the United States and China will be completed in the coming weeks. Mr. Hui said that investors' "risk appetite should improve as China's economic downturn risk is contained.
Chinese economy lost its momentum previously after the government's effort to crack down on risky lending which caused many companies to starve for funds that they need for expansion. The Chinese economy also faced the obstacles caused by the effects of the trade war with the United States. The western economic giant imposed tariffs on about $250 billion of Chinese exports.
The investors were spooked because of the ongoing trade conflict between China and the United States. The recent development in the China-United States trade negotiations contributed a lot to the momentum of China's growth. last month, the Chinese government predicted that the economic growth of the country is between 6 percent and 6.5 percent in 2019.
After slow growth in China's economy in recent months caused the government to resort to hundreds of billions of dollars worth of new measures to uplift the economy. The government imposed tax cuts for businesses infrastructure spending and looser monetary policy. Economic experts now believe that the measures taken by the government now bear fruit.
China's critics, however, criticized the numbers released by the government. Leland Miller, CEO of advisory firm China Beige Book, said during an interview with CNN business in February that the Chinese published GDP numbers are absolute garbage and it is certainly the consensus that these numbers are unreliable.