As per the latest data released by National Bureau of Statistics of China, the Chinese economy grew 6.6% in 2018, its slowest pace since 1990. In 2017, the economy grew 6.8%.
The major factor causing the economic slowdown is the China’s trade war with the U.S., after the latter-imposed tariffs on U.S $ 250 billion worth of Chinese exports.
The Head of National Bureau of Statistics of China said, “The trade war had weighed on the economy but that the impact is still under our control. Global conditions this year will be more complicated and severe, but China’s economy will move forward with stability.”
The Government, in order to revive the economy, has announced new measures worth 1.3 trillion yuan (U.S. $ 193 billion). These include expediting the construction projects, reducing taxes and the reserves that banks need to hold.
The Gross Domestic Product (GDP) grew 6.4% in the 4th quarter of December 2018, down from 6.5% in the previous quarter. This is perhaps the lowest growth rate ever since the Chinese Government started publishing its quarterly growth data in 1992. For the records, in the first quarter of 2009 also, China had recorded the growth rate of 6.4%, owing the global economic slowdown.
The Chinese exports saw a sharp decline in December 2018, while annual car sales fell for the first time in 20 years. However, there was a little respite for the economy as industrial output rose 5.7% in December 2018, the retail sales increased 8.2%. The monthly urban surveyed unemployment rate stood at 4.9%.
Besides, both China and U.S. are looking forward to the next round of discussions for resolving the trade dispute. China’s leading trade negotiator, Vice Premier Liu He is slated to visit Washington DC on January 30, 2019.