JANUARY 22: The latest figures on the world’s biggest economy are in.
China’s GDP has more than doubled to $14.5 trillion (€13.8 trillion) in the 12 months to December 2017.
The Chinese Communist Party (CCP) has announced that it expects the country to reach an all-time high of GDP in 2021.
It will need to do this through structural reforms to the economy.
These will include raising the value of the yuan (US$) and increasing productivity.
But, there are many who doubt the impact on growth.
For the first time, a Chinese economy is showing signs of slowing and of being on a path to recession, says Professor Matthew Crouch, a specialist in China’s economy at the University of Sussex.
He believes that the central bank has been too quick to move to a more accommodative stance.
“This is one of the reasons why we are seeing a gradual decline in growth,” he says.
“We have seen a big fall in the GDP growth rate in China over the past two years, and this will continue to happen.
China is still on track to become the world leader in economic growth in 2020.”
But the outlook is not all bad.
“There is also some good news in China,” says Crouch.
China has seen strong demand growth over the last few years, which has led to higher prices in the market.
“The price of some goods is also rising, which will be good for consumers,” he adds.
But the central banks rate of inflation remains very low.
For now, China’s growth has been slower than many other emerging economies.
But Crouch argues that it is still well ahead of most other nations.
“China has a very good, stable economic situation,” he concludes.
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