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21.01.201912:36 Forex Analysis & Reviews: China's economy shows the worst result in 28 years

Análisis a largo plazo

Exchange Rates 21.01.2019 analysis

In the fourth quarter of 2018, China's economic growth, as expected, slowed to 6.4% amid falling domestic demand, as well as economic pressure from the United States.

China's GDP growth in 2018 was 6.6%, which is the worst figure since 1990.

Apparently, Beijing will be forced to introduce new incentive measures in order to avoid a more dramatic slowdown in the economy. The authorities have already announced measures that should reduce the risk of large-scale job losses, while noting that they will refrain from over-stimulation in order to avoid a strong increase in public debt.

China's economy accounts for about a third of global growth, so published data are worrying investors, as they can put pressure on the profits of large companies, from Apple to automakers.

In the near future, most analysts predict a further slowdown in the growth of China's GDP to 6.3%, since stimulus measures will not immediately begin to yield results, and the factors of pressure on the economy are still strong.

Roman Agafonov,
Analytical expert of InstaSpot
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