The Chinese economy recorded gloomy economic data for the month of October. The National Bureau of Statistics (Nov.14) showed that China’s industrial production rose 4.7 percent, below the forecast of 5.4 percent growth in a Reuters poll.
China’s other sectors also slowed down and missed targets. The East Asian nation’s retail sales missed the 7.9 percent growth forecast. Even after rising only 7.2 percent year-on-year in October.
China has something to worry about as factors such as weak domestic and global demands further slowed its growth. The US-China trade has been an obvious contributing factor to the present state of the Chinese economy.
With both the US and China continue threatening each other’s products, many expect the trade war will not end any time soon.
China’s fixed-asset investment also missed targets. It saw a growth of 5.2 percent from January-October, missing the expected 5.4 percent figure. The fixed investment asset is a significant factor as it’s one of the most critical drivers of a country’s economic growth.
The slow pace has trickled down its citizens as they had to endure higher food prices in the past months. Furthermore, the reluctance of consumers to make big purchases pushed auto sales lower.
Chinese industrial, food and auto sectors are receiving hard hits. This would create a spillover into other industries without the presence of reforms to counter the negative effects.
China is making necessary efforts to counter this downward economic trend. The country began lowering the minimum capital ratio requirement for some infrastructure investment projects. This is just a part of its plan to get back on track and reach their economic targets.
China is also expected to implement other measures and reforms to mitigate the unwanted trend it is currently experiencing.
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