The second largest economy in the world, China’s, economic growth during the December end quarter lagged to its slowest expansion since the global financial crisis of 2008-09. China’s gross domestic product (GDP) expanded by 6.4 per cent in the fourth quarter of the current fiscal year.
According to the economic numbers released, China’s GDP during the previous quarter of the current fiscal stood at 6.5 per cent. The slowdown in the Chinese economy is attributed to weakening global demand and trade conflict with the US.
As per the numbers from the statistics office, China’s Industrial output increased by 5.7% whereas retail sales surged by 8.2%. The urban monthly surveyed unemployment rate was reported at 4.9% in the fourth quarter and the fixed-asset investment jumped 5.9%.
China’s economy is projected to be on a long-term slowdown as it shifts from the investment-led model of the past while carrying a heavy debt load. In order to combat that, the People’s Bank of China has been quietly trying to bring the interbank borrowing costs down without actually cutting official interest rates.
The slowdown in the Chinese economy is going to have an adverse effect on the global trade due to the sheer size of its market. Many companies and industries are suffering because of the Chinese slowdown. The auto industry witnessed a major fall in demand from China causing Tata Motor’ JLR and others automaker to go down whereas tech giant like Apple Inc forecasted a rocky road ahead due to the sales decline.