March 1, 2021
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Deepening crisis
China’s economic slowdown needs timely intervention A series of events has jolted China’s economy and rattled markets around the world. Early this year the Chinese stock market shed nearly a fifth of its value. Now the fresh data from China has confirmed its economy is continuing to lose steam.  China’s slowing growth has been dragging the global economy as Beijing hopes for a shift towards services and consumption in its domestic market. Against the backdrop of a faltering global economy, turmoil in the country’s stock markets and overcapacity in factories, Chinese economic growth has slowed markedly. After growing 7.3% in 2014, the economy is thought to have expanded by 6.9% in 2015 and the Chinese central bank has forecast that it may slow further in 2016 to 6.8%. Even China’s top leadership has acknowledged the serious challenge it faces in keeping growth apace. A series of interventions by policymakers, including interest rate cuts, have done little to revive growth and in some cases served only to heighten concern about China’s challenges. China after witnessing nearly three decades of double-digit growth has been showing signs of slowness. Though China is trying to name this economic crisis as ‘economic rebalancing’, experts believe that if timely action is not taken the world’s second-biggest economy could be the source of the next global downturn. Weak economy Signs of weaker-than-
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