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It Is Extremely Tough To Maintain 6% Growth Of Chinese Economy

In the recent time, Li Keqiang—Premier of China—said it is “extremely difficult” for China’s financial system to grow at a pace of 6% or beyond that as the high base from which it was commencing and the complex international backdrop. The second-largest economy globally faced “certain decline pressure” owing to slowing global development as well as the surge of unilateralism and protectionism, Li stated in an interview. China’s GDP (gross domestic product) grew by 6.3% in the first half of 2019, and Li asserted the financial system was “generally steady” in the first 8 months of the year. He added, “For China to uphold progress of 6% or more than that is quite difficult against the existing backdrop of a complex global situation and a comparatively high base, and this pace is at the front position of the leading economies worldwide.”

Analysts state China’s financial growth has likely alleviated further in this quarter from a nearly 30-Years low of 6.2% during April–June. Morgan Stanley stated it is now monitoring the lower end of the administration’s full-year target margin of around 6–6.5%. In response, the executives have boosted the support, announcing on September 6 a curb in the RRR (reserve requirement ratio) for the third time in 2019, releasing $126.35 Billion (900 billion yuan) in liquidity into the economy.

Speaking of China’s economy, recently, it was stated that aches are all over since Beijing looks for trade fix with the U.S. The monetary activity in China eased in the last month, testing Beijing’s resistance for slowed growth as it seeks to alleviate trade spat with the U.S. The softness was noticeable in the last month in almost every aspect of the Chinese financial system, with retail sales and industrial output data pointing to slow demand and diminished sentiment amongst businesses and consumers.

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