On Monday, China officially posted that its economic growth was the lowest since 1990.
Some experts said China’s official figures could even be masking a more severe slowdown.
“The official GDP figures have been too stable in recent years to be a good guide to China’s economic performance,” said Julian Evans-Pritchard, senior China economist at Capital Economics, according to CNBC.
Over the past decade, China has been responsible for about a third of the world’s economic growth.
“The world economy is growing more slowly than expected, and risks are rising,” said Christine Lagarde, the managing director of the International Monetary Fund, according to The New York Times. “Does that mean that a global recession is around the corner? No.
“But the risk of a sharper decline in global growth has certainly increased.”
Will China give in to President Trump’s trade demands?
Chen Xingdong, chief China economist at BNP Paribas, said the Chinese government is unlikely to pour money into the economy.
“What China can really do this year is to prevent deflation, prevent a recession and a hard landing in the economy,” Chen said.
“European investment in China is going down,” Cecilia Malmström, the European Union’s commissioner of trade, according to The New York Times. “That is more because it is becoming increasingly complicated to do business there, with the forced technology transfer, with the lack of transparency, discrimination as compared to Chinese companies, with the massive subsidies of state-owned companies.”
— Bill Mitchell (@mitchellvii) January 18, 2019
“Things are going very well with China and with trade,” he said, according to a White House media pool report. “There were some false reports about sanctions being removed, we have taken in tremendous amounts of money into the United States because of the sanctions, and we’ll see how it goes. And if we make a deal, certainly we wouldn’t have sanctions.
“It’s going very well, I would say about as well as it could possibly go. And without a question.”
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