It may come as no surprise that the IMF decided to downgrade its growth outlook for China. The revision was driven by weak global economic conditions and unsatisfactory results recorded in China as well. Indeed, the IMF is concerned about the economic recovery in China and it believes that the country’s authorities should introduce essential reforms aimed at bringing a sustainable recovery.
China’s Premier Li Keqiang surprised analysts as he announced that further stimulus measures to foster growth were unlikely. Certainly, this new approach is surprising for many analysts, taking into account that Premier Li Keqiang underlined that the world’s second economy should have faith in market mechanisms. The statement of the prime minister dealt a lethal blow to some investors’ hope that China will take more aggressive steps to boost the economy.
On the 14th of December, HSBC Holding Plc informed that the initial China manufacturing grew to 50.9 in December. The results of the HSBC survey show that the world’s second economy is on the track to recovery despite the fact that the country is facing external weaknesses. The growth, which was seen in new orders and employment, means that China may expect better days. In addition, the China PMI suggests that the country will be able to resist an evident slowdown in exports.
On the 1st of December, the National Bureau of Statistics released data on PMI in China which proves that the Chinese economy is showing signs of recovery. According the findings, the China’s PMI was 50.6 in November, up from 50.2 in October. Basically, the figures point out that the China’s economy is recovering after a slowdown.
According to the reports by some business magazine in line with a poll from the Reuters, the GDP number for China marked a sixth consecutive quarter of easing growth. These reports have left the analysts trying to accumulate data and figure out whether the second quarter of the year will mark the bottom or the extension of this downward cycle. It is important for the investors that the trajectory of economy is facing a downward slope not only in the country of China, the second largest economy of the world but also other emerging economies.