As the world economy stumbles into 2019, eyes turn to China
‘Even if the world economy avoids a painful slowdown this year, it faces daunting fundamental challenges’
London — Ten years after China helped stave off the threat of a global depression with a huge stimulus plan, investors are looking once again towards Beijing as the world economy heads for a slowdown, or worse, in 2019. Booming China has accounted for about a third of the growth in the global economy in recent years. So recent signs that it is losing momentum is unsettling when the US boom, turbo-charged by President Donald Trump’s tax cuts of 2017, seems to have peaked and Europe’s heavyweights are stalling. China’s slowdown is already being felt around the world, from Apple’s profit warning due to weaker sales of its iPhones to car maker Jaguar Land Rover (JLR) laying off workers, after a 22% fall in sales in the country in 2018. Policy sources told Reuters in Beijing on Friday that the government is planning a lower economic growth target of 6% to 6.5% for 2019 after an expected 6.6% in 2018, which would be the slowest expansion since 1990. In the first few days of 2019, China ra...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.