China's economic growth hits three-decade low

Sun Online Desk

17th January, 2020 11:50:22 printer

China's economic growth hits three-decade low

China's economy grew last year at the slowest pace in almost three decades.

Official figures show that the world's second largest economy expanded by 6.1% in 2019 from the year before - the worst figure in 29 years.

The country has faced weak domestic demand and the impact of the bitter trade war with the US.

It comes after almost two years of trade tensions with the US - although hopes of a better relationship with America have seen improvements in manufacturing and business confidence data.

This week Washington and Beijing signed a "phase one" trade deal.

The government has used a combination of measures aimed at easing the slowdown, including tax cuts and allowing local governments to sell large amounts of bonds to fund their infrastructure programmes.

The country's banks have also been encouraged to lend more, especially to small firms. New loans in the local currency hit a record high of $2.44 trillion (£1.86tn) last year.

So far the economy has been slow to pick up, with investment growth falling to record low levels.

Historically, China has seen much stronger economic expansion, with the first decade of the 21st Century seeing double-digit percentage growth.

As part of the phase one deal, China pledged to boost US imports by $200bn above 2017 levels and strengthen intellectual property rules.

In exchange, the US agreed to halve some of the new tariffs it has imposed on Chinese products.

Source: BBC

 


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