China’s economy slowest in years. The new five-year plan provides for structural reforms – Polish Radio

                             According to analysts from Moody’s, there are legitimate concerns that the Chinese authorities will be able this year to make the necessary economic reforms.
                         

Moody’s downgraded the outlook of the Chinese government debt from “stable” to “negative.”

According to analysts agencies, without introducing necessary economic reforms, the pace the growth of Chinese GDP will drop.

demographics not help

unfavorable for the Chinese economy also influence the demographic processes in the country.

Moody’s notes that high debt is excessive burden for investment. Agency predicts that public debt in China will grow more rapidly than expected.

In previous years, Moody’s repeatedly drawn attention to the problem of underreporting the real debt level in China.

As bad it was 25 years

last year, China’s GDP grew by 6.9 percent. The last time GDP growth rate below 7 percent. was recorded there in 1990.

The Chinese authorities have forecast the previous year’s growth rate of just 7 percent.

Analysts expect further declines

According to analysts, the optimistic forecasts China’s GDP in the next four years will decrease by a further 0.4 percent.

– I would like to warn that China is experiencing a period of deflation caused by the economic slowdown. This process is very difficult to reverse with the traditional monetary and fiscal policy. This means a further slowdown in the coming years – said Liu Li Gang, an economist with Hong Kong.

China “locomotive” of world economic growth

On the other hand, emphasizes , that – even weakened – China’s economy remains one of the main “engines” of growth of the world economy, a major player in international trade and one of the largest consumers of raw materials.

the Chinese economy faces ever greater challenges. The authorities try to stimulate domestic consumption and development of advanced technologies sector, moving away from the model of increasing state spending and loans.

Matthew Adamkiewicz, analyst HFT Brokers: potential crisis in China a big threat not only for the euro zone but also for Polish .

Source: Newseria

IAR / PAP, Celebrating