China’s GDP growth expected to be slowest in decades

Andy Uhler Oct 17, 2019
Share Now on:
HTML EMBED:
COPY
China's exports fell by over 3% in the past year, slowing GDP growth. Above, the port in Qingdao in China's eastern Shandong province in 2018. AFP/Getty Images

China’s GDP growth expected to be slowest in decades

Andy Uhler Oct 17, 2019
China's exports fell by over 3% in the past year, slowing GDP growth. Above, the port in Qingdao in China's eastern Shandong province in 2018. AFP/Getty Images
Share Now on:
HTML EMBED:
COPY

The Chinese central government will release gross domestic product (GDP) data on Friday and economists expect growth to be right around 6%, maybe even lower. That would be the slowest growth in China in almost 30 years.

Chinese exports fell by 3.2% year-on-year in September, underscoring the impact of the trade war with the United States and slowing global demand generally.

Chinese households are already feeling the current economic stagnation and the government has to be ready if things get even worse.

“A significant slowdown, beyond what they’re already facing, would be a truly unique challenge for China’s political leaders,” said Andrew Coflan, a policy analyst in the China practice at the Eurasia Group.

The Chinese government has tried to spur growth in the economy by cutting taxes and introducing stimulus packages for the manufacturing sector, which hasn’t worked.

The Chinese government might have to use monetary policy to grow the economy. But as Victor Shih, an associate professor of political economy at the University of California San Diego warned, that comes with its own set of consequences.

“If the Chinese government were to print more money, that could exacerbate inflation. Which is also not desirable for the government,” he said.

If you’re a member of your local public radio station, we thank you — because your support helps those stations keep programs like Marketplace on the air.  But for Marketplace to continue to grow, we need additional investment from those who care most about what we do: superfans like you.

Your donation — as little as $5 — helps us create more content that matters to you and your community, and to reach more people where they are – whether that’s radio, podcasts or online.

When you contribute directly to Marketplace, you become a partner in that mission: someone who understands that when we all get smarter, everybody wins.

We’re here for you.

As COVID-19 reshapes our economy, our newsletter will help you unpack the news from the day.