China's "tough fight"
(Baonghean) - The Chinese government forecast economic growth of 6-6.5% for 2019, which means a decline from last year's 6.6% growth - which was already the country's lowest annual growth rate in the past 3 decades.
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| China's economy is forecast to grow more slowly this year. Getty Images |
In a speech, Chinese Premier Li Keqiang said: “China’s development this year is facing an increasingly complex and severe environment. There are greater risks and challenges both within and beyond our expectations, and we must be fully prepared for a tough fight.”
Earlier, Mr. Li Keqiang gave China's growth target at the annual meeting of the National People's Congress (the country's parliament), confirming the forecasts of most economic experts.
China’s growth has lost momentum following government efforts to curb risky lending, and the world’s second-largest economy is already feeling the effects of the trade war with the US, particularly new tariffs on $250 billion worth of Chinese exports.
Although trade tensions are showing signs of easing, US President Donald Trump affirmed last week that the two sides are “very close” to an agreement and he is expected to meet his Chinese counterpart Xi Jinping for a “summit signing ceremony”, but this is not expected to help “restart” Beijing’s growth engine.
According to the International Monetary Fund (IMF), global economic growth is forecast to slow this year, and China - the largest exporter - is sure to be affected by the decline in demand.
“The weakness in the global economy that we expect in 2019-20 is largely due to country-specific factors that we believe will cause each of the world’s major economic regions to slow down,” Neil Shearing, chief economist at research firm Capital Economics, said on March 4. “So while the US-China trade deal is certainly welcome news, we will not be rushing to change our forecasts.”
In recent months, Beijing has announced a multi-billion-dollar package of measures to boost the economy, including tax cuts for small businesses, lower import tariffs, increased infrastructure spending and looser monetary policy. But many of these measures will take time to have a real impact.
