Royston Carr Asset Management - China's economic growth slows to 27 year low as trade war bites.
Online PR News – 09-September-2019 – Taipei, Taiwan – Although China's economic expansion fell to its slowest pace of growth seen in almost three decades in the second quarter of this year, analysts at Royston Carr Asset Management say it is still growing faster than the US economy.
US President Donald Trump has stated that he believes his trade war and tariff policies are working after recent data revealed China's GDP growth had fallen to a pace not seen since 1992.
The US has imposed tariffs on $250 billion worth of Chinese goods and China has retaliated with tariffs on US goods to the value of $110 billion. Although Trump believes his trade battle is responsible for the slowdown in China's economy, Royston Carr Asset Management analysts have pointed out that China's economy is still expanding four times faster than its trade war rival.
While China's economic conditions are still challenging due to both domestic and international factors and a global economic slowdown will likely cause further instability in China, the Chinese government will likely resort to further stimulus to help support the economy during this difficult time.
But Royston Carr Asset Management analysts are skeptical about whether or not additional easing measures will be effective. Construction activity will probably come under significant pressure in the coming months as the recent property upswing begins to plateau. This combined with punitive US tariffs and the global economic slowdown will make for tough times ahead for China's once booming economy.