China: 2019 economic growth at slowest pace in almost three decades

17th January 2020

Despite registering a growth rate of 6.1% in 2019, it was still the worst figure in 29 years.

Official figures registered an economic growth rate of 6.1 per cent in China from 2018 to 2019, the slowest pace in 29 years.

Commentators chalk the slowed pace down to weakening domestic demand as well as the impact from a trade war currently raging on between China and the US.

In response, the Chinese Government has been meting out measures aimed at boosting growth over the past two years.

Hopes of an improved relationship with the US coming from a ‘phase one’ trade deal negotiated between the two sides have seen improvements in manufacturing and business confidence data.

The trade deal was negotiated this week while the Beijing Government is expected to roll out further stimulus measures in an effort to boost growth.

Measures already employed include tax cuts, allowing local Governments to sell off bonds to fund infrastructure projects and encouraging banks to lend more, especially to smaller firms. New loans in the local currency hit

The government has used a combination of measures aimed at easing the slowdown, including tax cuts and allowing local governments to sell large amounts of bonds to fund their infrastructure programmes.

Banks have also been encouraged to lend more, especially to small firms. New loans in the local currency hit a record high of €2.2tn last year.

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China: 2019 economic growth at slowest pace in almost three decades