China's economy continued to grow steadily in the first quarter, exceeding expert expectations notwithstanding the continuing tariff dispute with the United States.
Data revealed Wednesday showed that China's economy outperformed forecasts as growth steadied in the first quarter of the year in spite of moderate global interest, a United States trade war and a battle versus the country's growing financial obligations. The country's economy expanded by 6.4 percent in the January to March period, faster than the 6.3 percent projected by economic experts in an AFP survey.
Investors have been following the strength of the Chinese economy carefully amidst China's ongoing battle with the United States. Chinese officials' GDP figures are followed closely, however, as many analysts have long exhibited suspicion about the accuracy of China's reports.
Is Chinese development slowing?
Recovery of Chinese growth and demand for imports might help to reinforce declining global economic activity. China is the most critical export buyer for its Asian neighbors and a leading market for automobiles, mobile phones, consumer goods, food, and technological innovation.
Chinese officials stepped up basic federal government expenses in 2018, directing banks to grant more after monetary growth flatlined, raising the threat of politically painful job losses. Related: America’s Biggest And Most Profitable Actually Got Tax Rebates
New credit spilled into the commercial system last month, with the development of bank loans and overall impressive credit hastening, though analysts estimate it will take about six months to spark a true economic rebound.
The trade war carries on
The trade war between China and the U.S. has weighed on monetary activity internationally, especially in the second half of last year. That put more pressure on China as the country was striving to detach its economy from excessive dependence on debt to expand, triggering issues that suggested Beijing might be heading towards a rough patch.
The two sides have gone back and forth on tariffs on more than $360 billion in two-way trade, leaving manufacturers in China and farmers in the United States reeling as a result. And while progress is being made in the trade war, up until now, no date has been set to unite President Donald Trump and Xi Jinping for a final solution.
By Michael Kern for Safehaven.com