Thu, 21 Feb 2019

China's economic slowdown and the need for more stimulus

Alanna Dominguez
16 Jan 2019, 10:57 GMT+10

BEIJING, China- China will strive to have a strong start to the economy in the first quarter as it tells authorities to come up with more stimulus measures to counter slowing growth in the economy, said the state planner on Tuesday.

According to Premier Li Keqiang, China attained its key 2018 targets and seeks to have a good start in the first quarter in order to establish conditions that will enable the country to meet this years goals.

In a statement, the National Development and Reform Commission (NDRC) said that China will strengthen the monitoring of its economic situation as well as enhance its reserve of economic policies.

China, which is the worlds second largest economy, began to slow down in 2018. This is after Chinese authorities came up with long-term structural adjustments to shift to a more gradual but sustainable growth course. A slowdown has also been influenced by the trade war between the U.S and China.

This trade war has mounted pressure on Chinas economy and even caused the most unexpected fall in exports in December. In order to double gross domestic product and incomes in 2020, a 6.2% annual growth is needed this year and in 2020.

According to the NDRC vice chairman Liam Weiliang, the governments top priority is to stabilize employment. He also added that China will speed up local government bond issuance and investment projects. He, however, said they will not resort to flood stimulus.

Sign up for US News

a daily newsletter full of things to discuss over drinks.and the great thing is that it's on the house!