logo

FX.co ★ China’s economy gaining momentum?

China’s economy gaining momentum?

China’s economy gaining momentum?

The world community has revived confidence in China’s economic miracle. China’s stock market correction and currency devaluation sent shock waves through global markets for long. All countries have been closely monitoring efforts of Beijing to tackle high volatility in the stock market and bolster economic growth. “Three months ago, the world got into panic on the back of a sharp slowdown in China’s economy. The authorities made bad errors on the stock market. Markets voiced concern about a series of abrupt moves to devalue the yuan,” said David Dollar, a Senior Fellow in the John L. Thornton China Center at the Brookings Institution. Being the world’s second largest economy, even minor contraction in China’s economy contributes to global turbulence. Therefore, it is time for a deep breath in light of upbeat macroeconomic data for Q1 refuting fears about an economic collapse.

China’s economy expanded 6.7% on-year in Q1 2016. Industrial output, a barometer of economic health, surged a whopping 6.8%. In March, exports logged a sharp recovery of 11%, showing growth for the first time since summer 2015. Retail sales increased 10.3% in Q1 from 10.2% in the final quarter last year. "Chinese economic data is showing signs of stabilization, including recent PMI numbers, as well as the latest figures on industrial production and retail sales,” Suan Teck Kin, an economist at United Overseas Bank (Singapore), comments on the recent statistics from China. Independent experts note that most countries had to accept a slower pace of China’s economic growth.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
Go to the articles list Open trading account