Warrington Shaw - Growth Prospects Dim for China in 2019
Warrington Shaw - Government stimulus policies may not be enough to prevent China's economic growth from slowing in 2019.
TAIPEI, Taiwan, January 21, 2019 (Newswire.com) - With Guangzhou, the heart of China's manufacturing and exporting sector, missing its targeted yearly growth for 2018, analysts at Warrington Shaw say economists are growing concerned about the state of China's economy.
Guangzhou's targeted growth for last year was 7.5 percent but the city only expanded by 6.5 percent and Warrington Shaw analysts say this could be a sign that China's seemingly invincible economic expansion momentum is slowing.
As the impact of the trade war with the US starts to impact various areas of the world's second largest economy, several of China's provinces have downwardly revised their growth targets for this year.
Warrington Shaw analysts say China's central bank will likely set a lower growth target for this year than the 6.5 percent targeted last year. Last year saw China record the slowest rate of growth in more than a decade and many economists believe government support may not be sufficient to offset the effects of the US Sino trade war.
China and the US called a 90-day trade war truce in December last year to allow officials from both countries time to negotiate.
Although the most recent round of trade talks between the US and China may have made some progress in bringing an end to the trade dispute between the world's two largest economies, Warrington Shaw analysts say the list of unresolved issues remains extensive and a workable solution may still be a way off.
In an effort to defuse the ongoing trade tensions, China has agreed to purchase significant amounts of products and services from the US but has not committed to any set dollar value.
Source: Warrington Shaw