2017 was a year of expansion and booming export prices, as China saw its economy surge 6.9 percent, according to official data. The Chinese government noted that this is the first annual increase in seven years.
The latest results exceeded economist’s predictions for the world super-power placing China’s growth target at 6.5 percent. China expanded its economy at a 6.7 percent annual pace in 2016, a rate considered to be the lowest in almost three decades.
According to the report, fourth quarter growth managed to remain steady at 6.8 percent, however, it stumbled when compared to the 6.9 percent registered in the first half of the year.
More so, the export industry was considered to be one of the main factors behind the expansion, despite the strained relationship with a United States led by Trump.
“The national economy has maintained the momentum of stable and sound development and exceeded expectations,” said the report made available by the National Bureau of Statistics.
China’s official data was first forecasted by Chinese Premier Li Keqiang, something that was not thought possible by analysts. More so, the results would be considered somewhat of a victory for China’s communist leadership, who are trying to steer the country towards a sustainable consumer spending that would not rely on exports or investments.
Louis Kuijs of Oxford Economics states that continued strong demand should help support China’s export activities. Kuijs believes China’s GPD growth will slow to 6.4 percent this year.
However, slowing down China’s credit is not the only thing that would impact the country in 2018. China’s increased effort to increase air quality and tackle its massive debts may make the superpower stumble this year.
According to the International Monetary Fund (IMF), China’s debt is now the equivalent to 234 percent of its total output. China will have to focus more on improving its bank’s finances instead of relying on economic growth. Its debt has risen noticeably around local government loans, non-performing bank loans, and corporate and household debt.
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