Daily Management Review

Chinese economy is slowing: Does it mean a hard landing?


11/14/2017


Economic growth in China slowed in October, while the credit risk management campaign is gaining momentum, and the Communist Party declared a less strict approach to achieving growth targets, Bloomberg reports.



faungg's photos via flickr
faungg's photos via flickr
Industrial production in October rose by 6.2% in annual terms after an increase of 6.6% in September, according to data from the State Bureau of Statistics of China. Analysts interviewed by Bloomberg on average predicted a slowdown to 6.3% last month.

Retail sales grew 10% year-on-year, at a minimum rate for the year, after rising 10.3% in September. Analysts had expected a 10.5% increase in sales in October.

Investments in fixed assets (excluding agriculture) for the first 10 months of the year increased by 7.3% compared to the same period last year, which is in line with the forecasts of economists.

Private investment in fixed assets in the oil and gas industry in the first 10 months of the year decreased by 22.3% compared with the same period in 2016.

"Today's data looks a little worse, because we had higher figures in September, but that does not mean that the economy is slowing down," said a researcher at the Institute of International Finance of Bank of China Ltd. in Beijing. "China will complete the year with good dynamics ".

"There has been a clear shift in the direction of protecting against risks and reducing the share of borrowed funds after the party congress," said Asia's chief economist at Mizuho Securities Asia Ltd. in Hong Kong. "We have reached a turning point in economic policy."

"If you look at the global economy, we forecast higher growth rates in 2018 this year, so the demand for China's exports will continue to be maintained," added a chief economist for China at Barclays Plc in Hong Kong, in an interview with Bloomberg Television. "There is good reason to expect that economic growth will remain strong next year."

Chinese President Xi Jinping announced at the opening of the XIX Congress of the Communist Party in October that China will deepen economic and financial reforms and will continue to open its markets to foreign investors, as the country wants to move from accelerated to qualitative growth.

Beijing's efforts to limit high levels of debt and production capacity will continue as part of structural reforms on the supply side, Xi said.

source: bloomberg.com






Science & Technology

Scientists Discover Largest Ever Under Water Volcanic Eruption Near New Zealand

Bitcoin craze increased load on the power grid to the maximum

PC And Server Performance Slows Down Due To Security Patches For Chip Flaws, Says Microsoft

Cybersecurity Firm Claims Cryptocurrency Monero Might Be Getting Funneled To North Korea University

The Way We Travel Will Be Changed by The Colorless, Odorless Gas - Hydrogen

EU's Big Change In Data Protection Rules Makes Businesses To Get Ready For It

Artificial Intelligence Helps NASA Find An 8th Planet In Orbit Of A Distant Star

Australian Research Success Could Mean Shatterproof Cell Phones Could Soon Be A Realityv

Top ten hi-tech events of the year

Tesla Considering Designing And Developing AI Chips On Its Own To Support Its Auto-Pilot Project

World Politics

World & Politics

Take and go away: new approach to refugees in Europe

Both The Korean Countries Will Come Together In Olympic Talks

Parties of Germany agreed on the migrants problem

Munich Re: Natural disasters caused record damage in 2017

High-Level Talks To Be Held Between North And South Korea In Over Two Years

Sexually Abusing Children Interests An Estimated 20,000 British Men, Shows Police Monitoring Of Chat Sites

2018 Could See An Increase In Terror Attacks Where Both ISIS As Al-Qaeda Continue To Present Threats

What will happen to European populism in 2018?