China’s economic growth improved externally in 2017
11 june 2018
The economic growth in China improved in 2017 on the back of improved external as well as domestic sector dynamics.
As per a report named, ‘China: Deleveraging to weigh on economic activity’ issued by Deputy Managing Director and Chief Financial Officer of State Bank of India Anshula Kant, the on-going global economic recovery and improved consumer-business sentiments domestically reinforce growth momentum.
On the external front, China posted a current account deficit in Q1 2018 (the first time in 17 years) amidst trade conflict with the US.
In the meantime, the Central bank has implemented stricter macro-prudential norms and deepened reforms aimed at financial deleveraging to curb asset price bubbles.
Though, China is expected to continue its proactive fiscal and monetary policy.
China has set 3-year target to clean up the financial sector and country’s polluted air.
This comes as a trade-war fear is looming upon China as United States President Donald Trump-led administration has imposed 25% tariffs on $50 billion of imports from China by the middle of June
However, this has more to do with structural rebalancing that China is undergoing and the fears of a full-fledged trade war with US dissipated after the US recently suspended the tariffs.
But the US has now again planned to move forward with imposing, bringing back the concern of trade war.