For a few years now, we can say that China has had the power to make the rain and sunshine in the world of finance. When the country revises its growth forecasts for 2016 and 2017 downwards, specialists worry….
Declining growth in China: a major reversal of consequencesThe
day after the summit that took place on the Chinese side in early March 2016, the news has fallen: a decline in growth is to be expected in China for 2016. For many years, the Middle Kingdom was considered a true Eldorado for anyone wishing to invest. Today, it is the decline of its economy that is causing talk. It was the Chinese Prime Minister himself, Li Keqiang, who announced that the projected growth would be 6.5%. This is 0.5 percentage points lower than the previously announced forecast, reaching the lowest rate in the last 25 years. However, the Prime Minister wanted to be reassuring: investors can access companies specializing in telephony and oil.
is aware that the slowdown in growth is not necessarily the result of a real decline in economic growth. Rather, it would be a transformation of the economy in the country. In the past, real estate and agriculture supplied this sector. Gradually, the tertiary sector tends to predominate. In any case, the Communist Party is doing its utmost to ensure that the decline in growth goes unnoticed, highlighting in particular the soaring statistics on job creation. It should also be noted that the Chinese Prime Minister has full confidence in this party to maintain stable economic progress. The question is what strategy will be adopted.
Today, many investors are puzzled by the Chinese situation. One thing is certain: a upheaval is taking place. As a result, there is an explosion in the tertiary sectors, including e-commerce, industry and other service sectors, which has led to the creation of many new jobs and strengthened the country’s urbanization. Nevertheless, this development is taking place at the expense of agri-food and agriculture. The Chinese economic landscape will certainly change its face. It remains to be seen what impact this will have on the stock markets, as many investors are on the defensive