Slowing Growth Of China Economy Sparks Global Concerns

James Kirk
Author James Kirk
Collection StoriaBusiness

In the last quarter of 2019, China's economy grew at its slowest rate since 1990, sparking concerns about the impact on the global economy.

China grew at 6.6 percent in 2018, official figures published Monday showed.

In the three months to December, the economy grew 6.4 percent from a year earlier, down from 6.5 percent in the previous quarter.

The data was in line with forecasts, but underlines recent concern about slowing growth in the world's second-largest economy.

China's rate of expansion has raised worries about the potential effect on the global economy. The trade war with the US has added to the gloomy outlook.

The official figures on Monday showed the weakest quarterly growth rate since the global financial crisis.

While China watchers advise caution with Beijing's official GDP numbers, the data is seen as a useful indicator of the country's growth trajectory.

According to the BBC, China's economic slowdown is not news in itself. Beijing has broadcast this for several years, that it's going to focus on the quality not quantity of growth.

But still, we should be worried.

Slower growth in China means slower growth for the rest of the world.

It accounts for one-third of global growth. Jobs, exports, commodity producing nations – we all depend on China to buy stuff from us.

Slower growth in China also means it is more difficult for China to address its huge debt, even with the Communist Party's undoubted ability to be able to support the economy.

Capital Economics China economist Julian Evans-Pritchard said the Chinese economy remained weak at the end of 2018 "but held up better than many feared."

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