GulfBase Live Support
18/04/2016 05:24 AST
In a rare move, finance ministers and central bank governors of leading economies have voiced concern over the slowdown of China’s economoy, the world’s second largest, which could pose serious challenges to the growth of the global economy.
China after witnessing nearly three decades of double- digit growth has been showing signs of slowness and India has now replaced China as the fastest growing major economy of the world.
As a result of the economic slowdown, the Chinese economic model, traditionally based on manufacturing, investments and exports, is currently transitioning towards a model focused on domestic consumption, services and innovation.
“This rebalancing, which is being implemented in a resolute manner, inevitably affects China’s economic partners, even if it is still too early to determine its precise impact.
Yet, in any event, we will have to be ready to accompany these development,” the French Finance Minister Michel Sapin said in his address to the IMF on Saturday.
Wolfgang Schauble, the German Finance Minister attributed global economic slowdown to the Chinese slowdown.
“This slowdown is related to the necessary ongoing transition of the Chinese economy, to lower commodity prices, to earlier exaggerations and domestic shortcomings in some countries, like insufficient structural reforms,” he said.
British Chancellor of Exchequer George Osborne underscored the shared interest of the international community in supporting China as it grapples to enhance the resilience of banks and corporates and ensure the sustainability of local government finances and credit.
“Structural measures such as state-owned enterprise and financial sector reforms and steps to reduce excess capacity will support China’s economic transition,” said US Treasury Secretary Jacob Lew.
China’s economy grew 6.7 per cent in the first quarter of 2016, the slowest in seven years, to reach 15.9 trillion yuan ($2.4 trillion), the government said last week.
The growth further narrowed from the previous quarter’s 6.8 per cent, which was already the lowest quarterly rate in seven years.
The Gulf Today
Ticker | Price | Volume |
---|---|---|
SABIC | 114.77 | 5,915,941 |
Index | Closing | Change |
---|---|---|
NIKKEI 225 | 21,292.29 | -96.29 (-0.45 |
DAX | 12,002.45 | -94.28 (-0.77 |
S&P 500 | 2,614.45 | 32.57 (1.26 |
05/04/2018
Stock markets recoiled on Wednesday as China retaliated in an escalating trade war with the United States, leaving investors reluctant to take positions in anything but the safest of assets.
The Gulf Today
04/04/2018
Egypt will start meeting bond investors in Europe this week ahead of a potential euro-denominated bond issue, a document from one of the banks appointed to arrange the meetings showed on Tuesday.
Gulf News
04/04/2018
Foreign investment in France rose 16 per cent in 2017 to levels not seen for a decade as President Emmanuel Macron’s (pictured) bid to attract money from abroad gains pace, a government report said o
Oman Daily Observer
03/04/2018
Explaining Japan’s economy to foreign audiences is hard.
One big reason for this is that explaining something as large and complex as a $5 trillion economy is an inherently difficult task - the
The National
03/04/2018
China raised import duties on a $3 billion list of US meat, apples and other products on Monday in an escalating dispute with Washington over trade and industrial policy.
The government of
The Gulf Today