Wainwright Marks Management - China Economic Growth Slows in Q1
April 17, 2019 Politics News(PRLEAP.COM) China's economic growth weakened yet again in the first quarter of this year as the world's second largest economy implemented measures that failed to offset cooling global demand and the impact of the US China trade war.
Although official gross domestic product data will only be released this week, a survey of economists found that China's economy grew by only 6.3 percent in the first quarter making this the slowest rate of growth in almost thirty years.
Wainwright Marks Management analysts say that although the figure is still within range of the targeted growth for the year, it is apparent that the stimulus measures implemented by China are not yet having the desired effect.
China has taken steps to support the economy over the last several months by introducing significant tax cuts and reducing other fees to try and support struggling businesses.
The trade war with the US that has raged on for 9 months, has negatively impacted China's economy leaving the government desperately trying to rebalance its slowing economy.
While steps have been taken in the negotiations between China and the US to find a workable compromise that will see an end to the trade war and the rolling back of punitive tariffs, progress has been slow.
In the meantime China must find a way to offer support to private companies who are in desperate need of credit but avoid increasing its already heavy burden of debt.