China Economy To Recess?
Economists project that coming China data will point at a downturn, approximately to 6.5% from 6.9% in 2017, due to US-China trade scandal. They also forecast export growth to drop to 10% from February’s 44.5%. Weakening export growth is partly due to strong yuan, which rose near 3.7% versus the greenback in 2018. Lu Zhengwei (chief economist at Industrial Bank) seems hopeful, stating: "Overall, foreign demand remained strong in the first quarter. With a possible trade war with the U.S. looming, Chinese exporters may front load their overseas shipments before the U.S. tariffs kick in."
Industrial production growth is expected to fall to 6.2% in March. Growth in fixed-asset investment should lower to 7.6%. Domestic consumption is projected to stay strong. Retail sales are likely to lift 9.9%. Bank lending is projected to rise 1.2 trillion yuan. Foreign exchange reserve should mark increase as well.
Today, China fired back on the US. Chinese finance ministry announced even more tariffs on the US products. The tariffs will sum up 25% and the list includes 106 goods, worth 50 billion dollars. They are: soybeans, autos, chemicals, some types of aircraft, corn products and other agricultural production. Representatives of the US and China are yet to comment the situation.