february figures show chill in china economy
Last Updated : GMT 20:27:03
Arab Today, arab today
Arab Today, arab today

February figures show chill in China economy

Arab Today, arab today

Arab Today, arab today February figures show chill in China economy

Beijing - XINHUA

The rapid deceleration of China's economic growth indicators in the year's first two months shocked the market, as industrial output, fixed-asset investment and retail sales all dropped to unusual lows. Speculation has been widespread among experts that economic policy may be eased if the downward pressure continues to threaten the government's GDP target of about 7.5 percent this year. The National Bureau of Statistics said Thursday that year-on-year industrial output growth rate slowed to 8.6 percent in January and February, down from 9.7 percent in December and 10 percent in November. It fell to its lowest level since May 2009. Growth of overall fixed-asset investment, which is seen as the strongest driver of the world's second-largest economy, dropped to 17.7 percent during the first two months, compared with whole-year growth of 19.6 percent in 2013 and 18.2 percent in the fourth quarter. It reached a 13-year low for those same months. In the meantime, total retail sales increased by 11.8 percent, an easing from 13.6 in December and 13.7 in November, and was the slowest pace for the period since 2004. The above figures, combined with earlier released sluggish data of exports and manufacturing Purchasing Managers Index, indicate that the whole economy may even slip below 7.5 percent for the first quarter, according to economists. Hong Kong's Hang Seng Index retreated 0.67 percent at the close after rising as much as 0.6 percent earlier in the day. The Shanghai Composite Index pared gains after the reports and it closed 1.1 percent higher. Bank of America Merrill Lynch lowered its forecast of China's first-quarter GDP growth to 7.3 percent from 8 percent after the reports. The Ministry of Finance announced on the same day that in January and February, the nation's total fiscal income advanced by 11.1 percent, slower than 14.3 percent in December and 15.9 percent in November. Xu Hongcai, a senior economist at China Center for International Economic Exchanges, a government think tank, called the economic performance in the first two months "unusual but acceptable". "It shows that the economy will face many uncertainties this year, and policymakers should leave room for unexpected situations," Xu said. He expected growth momentum to be weaker in the first quarter, buta return should come after April, with stable GDP growth of about 7.6 percent maintained for the whole year. "Big driving forces for economic growth will come from the market's endogenous dynamic, which will be further stimulated by restructure reforms," Xu said. "For example, small and micro enterprises are expected to receive more supports from cutting taxes. And financial reform will inject more private capital to help developing industrial economy." Premier Li Keqiang expressed confidence at a news conference after the close of the National People's Congress meeting on Thursday that the nation will meet the flexible growth target of about 7.5 percent this year. In order to achieve the target, Liu Ligang, chief economist in China at the ANZ Bank, said the central bank may need to cut its reserve requirement ratio and adjust monetary policy to a more proactive stance. But Lu Zhengwei, a senior economist at Industrial Bank, predicted that the People's Bank of China is unlikely to cut the RRR until April, as the currency market liquidity is relatively sufficient. Louis Kuijs, chief economist in China at Royal Bank of Scotland, said it won't be necessary for the government to pursue expansionary policies even if GDP growth threatened to fall to between 6.5 percent and 7 percent. With a benign outlook supported by domestic growth drivers and improving global demand, the government can succeed in cool the rise in the credit-to-GDP ratio while protecting its bottom line on growth, he said. "Such a scenario would be welcomed by financial markets and good for financial asset prices." But if the downward pressures persists, Kuijs expects the government to look for ways to support growth, and the best way could be via pure fiscal policy — "with central government spending rising, financed by bond issuance", as there is not much room for monetary stimulus.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

february figures show chill in china economy february figures show chill in china economy

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

february figures show chill in china economy february figures show chill in china economy

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Banyan Tree Phuket Takes Festive Season

GMT 01:34 2017 Friday ,17 November

Banyan Tree Phuket Takes Festive Season
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Israel ready to cooperate with Saudi

GMT 06:31 2017 Friday ,17 November

Israel ready to cooperate with Saudi
Arab Today, arab today Top Democrat faces investigation

GMT 09:50 2017 Friday ,17 November

Top Democrat faces investigation
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today Angola oil boss sacked by father's protege

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Baidu speeds up AI progress

GMT 11:46 2017 Friday ,17 November

Baidu speeds up AI progress
Arab Today, arab today Urban, young and active?

GMT 11:01 2017 Thursday ,16 November

Urban, young and active?
Arab Today, arab today Ayten Amer happy for “The Flood” success

GMT 08:06 2017 Wednesday ,15 November

Ayten Amer happy for “The Flood” success
Arab Today, arab today Unloved vultures fight for their survival

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 08:21 2017 Tuesday ,14 November

Nelly Karim focuses on humanitarian roles

GMT 09:23 2017 Wednesday ,15 November

Years melt away as Bening & Bell play unlikely lovers

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 13:40 2017 Monday ,13 November

Pollution spikes in Delhi amid warnings

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 10:55 2017 Thursday ,16 November

UN warns fuel running out

GMT 01:04 2017 Wednesday ,15 November

In Morocco, a blue tourist town

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday