While optimism continues to grow for the U.S. economy, China is slowing. The economy in China is most likely slowing down much worse than the Chinese government is willing to admit.
Official numbers released Monday by the Chinese government show that their economy that is posting new manageable lows.They look managable, but this is the sign of how Trump’s efforts are starting to effect China and it’s economy.
For the last three months of 2018, growth came in at 6.4 per cent. That’s the slowest pace since a decade ago, when China was grappling with the global financial crisis. For the full year, according to official data, the Chinese economy grew at only 6.6 per cent.
That is the weakest pace of growth since 1990, when China’s economic miracle after the Tiananmen Square incident where they mowed down their citizens with tanks the year before. This is a very bad sign for China.
While the figures match historic lows, they show only a small drop from previous periods. Monthly data released Monday also suggested better-than-expected consumer spending and industrial production in December, raising the possibility that growth is stabilizing More detailed data tell a less positive story.
From investment to consumer spending to factory activity, the Chinese economy slowed markedly in the second half of the year and is expected to continue.
These numbers tell us the trade war Trump has started with China is starting to take a huge bite out of the Chinese economy. This more of Trump’s winning strategy.