The economic growth of China is slowing down year to year. In the coming 2020, the economic growth will slow down to 5.8 from 6.1 in 2019. According to the IMF (International Monetary Fund), the economic growth of China grew at a 6.6 percent rate in the year 2018.
According to the IMF, this growth downgrade of China is not only reflecting the tariffs. But are slowing domestic demands also. On Friday, 18th October 2019, Beijing says that the growth rate of China has grown 6 percent in the 3rd quarter from 6.2 percent in April to June period. The growth was slowest since 1993, but in the 3rd quarter it grew up to 6 percent.
This slowdown of the Chinese economy has resulted in imposing tariffs on Chinese goods. This is because U.S. President Donald Trump is trying to curb the country’s intellectual theft. Hence, it will result in greater gain to its market. The trade war of China is not only a burden weighing on the Chinese economy. The retail sales of China grew up with 9.8 percent this year in June.
On these issues, the PBOC (people’s bank of China), is also going to take action. According to PBOC, the central bank is going to cut the reserve requirement ration by three times. This is the only effort going to be made by PBOC to combat the slowdown of China’s economy. To support the growing economy of China Beijing is also going to take some steps. The Beijing government is going to make some reforms.
IMF (International Monetary Fund) said that if we will take measures like this, the economic growth of China will expand with 3.4 percent in the coming 2020. So, it is very much important to keep in mind that the subdued world growth of 3 percent is occurring at a time. Therefore, this is the time when all the monetary policies have significantly eased across advanced emerging markets.
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