Economy: China’s economy grows as slowly as a quarter of a century – Times Online

Economy: China's economy grows as slowly as a quarter of a century – Times Online

China’s government has missed its growth target. The exporting nation is suffering from the global recession. Has also identified the IMF. He lowered its forecast for 2015.

20th January 2015 07:12 clock

A container port in the Chinese city of Qingdao | © China Network Stringer / Reuters

China’s economy 2014 so slowly grown like in 24 years no more. The growth of the gross domestic product (GDP) slowed to 7.4 percent from how the statistics office in Beijing announced. In order for the government since 1999 its target for the first time just missed. She had targeted an increase of 7.5 percent. Such a weak economic growth China had recently suffered in 1990, the year had been imposed after the suppression of the Chinese democracy movement as international economic sanctions against China.

The International Monetary Fund (IMF) lowered its forecast for the current year and now expects a further economic slowdown to 6.8 percent. The main problem for those dependent on exports, China’s economy is the weak economy in the rest of the world: The IMF cut its global growth forecast for this year from 3.8 to 3.5 percent. For the euro zone, the organization said a growth of 1.2 per cent ahead -. Which is 0.2 percentage points lower than previously forecast

China’s President Xi Jinping stressed repeatedly that he the economy after years of boom would convert: He relies on strengthening domestic consumption and will make exports and imports more balanced and the overall economy more environmentally friendly. This means, according to government advisers but also a farewell to the high growth rates of the past that were double-digit growth over the years.

The weaker economy will have an impact, according to the president of the European Chamber of Commerce in China, Joerg Wuttke, on the German and European economy. The expectations of growth and margins in China would have to be scaled back in the next two or three years. Also investment is expected to be delayed. “But no one can neglect the market,” Wuttke said in Beijing. “China will be medium and long term again extremely important.”

Experts believe that the communist leadership now reduces its growth target for 2015 to around seven percent, but still falls to new economic aid, especially since state officials have recently shown increasingly dissatisfied with the course of the second half of the year. This has already led to the fact that the central bank surprising since more than two years cut interest rates in November for the first time. With further interest rate cuts and aid for the banks to boost lending to businesses is expected.