Connect with us

Hi, what are you looking for?

DOGE0.070.84%SOL19.370.72%USDC1.000.01%BNB287.900.44%AVAX15.990.06%XLM0.080.37%
USDT1.000%XRP0.392.6%BCH121.000.75%DOT5.710.16%ADA0.320.37%LTC85.290.38%
THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Economy

Economy

Risk of Rise in Debt Shadows China’s GDP Growth

The world’s second-largest economy, China, saw a rise in the fourth quarter by 6.8 percent. Rapid percent growth was thanks to the government’s spending and the bank’s lending. However, despite the growth, there might be some financial risk resulting from debt growth and more pressure to slow the rise of housing.
GDP in China rose to 277 percent near the end of 2016. That’s up from the 254 percent from the year before. According to the National Bureau of Statistics China’s economy grew 6.7 percent in 2016 as well. Housing was also a beneficial factor in keeping the growth up.
The percent for property investments rose from 5.7 percent in November to 11 percent in December. However, the housing market wasn’t the only factor. Retail sales around December rose due to mass consumer spending. Although consumer spending brought the growth up, income lagged. In order to contain the risk of debt, China’s officials say they intend to lower the target percent to 6.5.
To prepare for this, the People’s Bank of China decided to slash the amount of money the banks keep in reserve. An Economist at ING, Tim Condon, says that “Economic stability is always important but will be an even higher priority ahead of the 19th Party Congress.”
Yet that isn’t the only thing China worries about. The yuan lost nearly 7 percent value last year. This was due to the rise of the U.S. dollar along with China’s slow economic growth. While it is yet to be seen if President Trump fulfills many of his promises, China’s exports will be hit if the new president makes good on his promise of protective measure against exported goods.
“Trump advisers and cabinet-nominees have identified the U.S.-China relationship as in need of adjustment to support the president-elect’s objective of a manufacturing renaissance,” Condon believes.

Comment Template

You May Also Like

Business

US Views Declining Trade with China as Potentially Positive The United States’ top trade official, Katherine Tai, has suggested that the steep decline in...

Business

China’s Promise of Investment for Impoverished Sierra Leone Chinese President Xi Jinping has pledged to encourage Chinese companies to invest in Sierra Leone, a...

Business

US Singles Out Entities in China, UAE, and Turkey On February 23, the Biden administration announced new trade restrictions targeting 93 entities from Russia,...

Business

China’s Troubles Won’t Deter US Economy, Says Treasurer On February 23, U.S. Deputy Treasury Secretary Wally Adeyemo expressed concerns about China’s excess manufacturing capacity...

Notice: The Biznob uses cookies to provide necessary website functionality, improve your experience and analyze our traffic. By using our website, you agree to our Privacy Policy and our Cookie Policy.

Ok