Data released today 17th January 2020, reports that China’s economy slowed to its slowest pace in 29 years!
But it is slowing from a high and a remarkable period of sustained growth.
Will a slowing economy affect the Phase One trade deal?
If China’s economy is slowing, how does this bode for the promise made in the U.S. – China Phase One trade deal, where China is to increase U.S. purchases over the next two years?
Keep a promise
Can China afford to keep this Phase One trade deal promise? Will the slowing Chinese economy affect the trade deal or will the trade deal improve the Chinese economy? Will the deal assist both the U.S. and Chinese economies now the uncertainty has been removed, in part at least? But, many questions remain to be answered.
6.1% growth
Official figures show that the world’s second largest economy expanded by 6.1% in 2019 from the year before – the worst figure in 29 years. 6.1% is still an extremely remarkable growth rate and far higher than many other leading economies have achieved, and China maintained this level of GDP despite the U.S trade war battle.
Weaker?
The country has faced weak domestic demand and the impact of the bitter trade war with the U.S. The Chinese government has also been increasing stimulus measures over the eighten months or so in an attempt to boost growth.
6.1% GDP demonstrates a pretty successful economy.