قالب وردپرس درنا توس
Home / Business / China's economy hurts everywhere as Beijing seeks trade agreements with the US

China's economy hurts everywhere as Beijing seeks trade agreements with the US



PEKING – China's economic activity continued to cool in August, testing Beijing's tolerance for slower growth to ease trade tensions with the US Retail data suggest weak demand and low confidence among businesses and consumers. Economists had expected economic activity to recover somewhat from July, when it fell to its lowest level in more than a decade.

The value added of industrial production in China rose 4.4% yoy in August, well below that of economists. Expectations of growth of 5.2% and a slower rise of 4.8% in July were reported the National Bureau of Statistics on Monday with below expectations. Retail sales in China rose 7.5% yoy in August, a decrease from 7.6% yoy in July and below expectations of an increase of 7.9%, Cycle said

Li Wei,

A Standard Chartered Bank economist who warned against deflationary pressures on companies as weak demand pushes profits, resulting in inventories and reducing investment.

to stimulate growth, "said Li.

For now, China's leaders have taken a measured tone. premier

Li Keqiang

According to a statement released on the Government's website on Monday, China's economic performance in the first eight months of 201

9 has been stable overall and has made some progress.

"In the face of a complicated international situation and a higher base In comparison, it is not easy for China to maintain a medium to high growth rate of over 6%," the PM said before visiting Russia. "Such speed is still one of the largest economies in the world."

Fu Linghui,

a spokesman for the Statistics Bureau, who also attributed business disruptions due to strong storms and other temporary factors.

Mr. According to Fu, the government remains confident that it will be able to meet its target of maintaining growth between 6% and 6.5% this year. China's economy grew by 6.3% in the first half of the year.

Many economists expect 6.2% growth to slow further in the second quarter. Some forecast growth in the third quarter below the lower end of the Beijing target range. [19659005] "Given the much weaker economic data in August, it is quite difficult for the Chinese economy to sustain growth of more than 6% in the third quarter," said Zhaopeng Xing, an ANZ economist.

In recent weeks, China has stepped up its efforts to halt the economic slowdown by providing additional support for issuing local government bonds and providing more funding to banks for corporate lending.

Many economists, including those of Standard Chartered and ANZ, expect the central bank to lower its key interest rates this month, not only to cut down on borrowing costs, but also to spread the strong message that Beijing is ready to pay its Economy to support prices that move inversely as returns.

The real estate market was one of the few bright spots in August. Home sales growth in China was robust and accelerating in August, although Beijing continued to tightly control real estate purchases.

Domestic retail sales increased 9.9% year-on-year from January to August, up from 9.2% for the first seven months of the year.

Developers' aggressive promotional campaigns and homebuyer fears of further tightening measures have led to an increase in real estate transactions

Yan Yuejin,

Analyst at the real estate company E-House China R & D Institute.

However, real estate investment is likely to slow in the coming months, with developers pessimizing the real estate outlook and a slowing economy, Mr. Yan said.

Another silver lining was the unemployment rate, which is based on an official survey in China's major cities. Decreasing from 5.3% in July to 5.2%, a value that was at its highest level since government data was released last year.

The overall economic picture could also improve as trade tension between China and the US continues to ease. Both Washington and Beijing have recently made some goodwill gestures to reduce bilateral trade tensions.

China said on Friday that it would free the purchase of US soybeans, pork and other agricultural products from punitive tariffs

Trump card

The most urgent demands during the protracted trade war.

Copyright й 2019 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8


Source link