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Analysts have recorded “beginning of the end of” Chinese economic miracle

Аналитики зафиксировали «начало конца» китайского экономического чуда

The Chinese economy continues to slow amid a trade war with the United States, which by 2019 under the duties may be all American exports. According to forecasts, this year GDP growth will be 6.6%, and 6.3 percent.

The index of business activity in industry in China in November, declining for the third month in a row for the first time since summer of 2016 was almost below 50 — mark that separates growth from contraction. Current index value — 50 points exactly, was the lowest in 29 months and was worse than market expectations, writes in a review the economist ING iris pang.

The export orders index fell to 47 points, the lowest level in nearly three years. The General index of the new demand for products has fallen to 50.4 points, which statistics are not recorded from March 2016.

To close the “hole” the Chinese authorities want the expense of the state order: the provincial governments launched a massive campaign to attract debt, the expense of which they intend to Finance the operation of enterprises, in the amount of accumulated debt 200% of GDP.

Until the end of 2020 sertraline the government intends to inject into the economy about 9-10 trillion yuan. At 4 trillion a year will be allocated to infrastructure construction projects to support the industry even in war, in trade, says Finanz.

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