China's economy: a milestone for moderation
China's economy: a milestone for moderation. Today's publication of China's GDP data for 2014 will confirm the country's slowest growth in more than two decades. But the expected figure of 7.3%-still the fastest of any big economy-is hardly cause for concern. Slightly slower growth is part of the government's plan for steering the economy onto a more sustainable path as it concentrates on structural reforms such as creating a social safety net. And these days the Chinese economy is so large that growth of 7% now adds as much output-more than $700 billion-as a turbo-charged 14% did in 2007. However, even a healthy GDP figure is unlikely to assuage investors' fears about the Chinese stockmarket, which plunged by 7.7% on Monday, the biggest fall in six years. That is a long-overdue correction after a soaring rally that had little to do with economic fundamentals.
Welcome to Livewire, Australia’s most trusted source of investment insights and analysis.
To continue reading this wire and get unlimited access to Livewire, join for free now and become a more informed and confident investor.
Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.
No areas of expertise
Please sign in to comment on this wire.