Lola Evans
15 Aug 2019, 00:04 GMT+10
BEIJING, China - The Chinese economy is slowing faster than expected, new data released on Wednesday revealed.
Industrial output for July, according to the National Bureau of Statistics was expected to decline from 6.3% last year to 5.8%. However the figure came in at 4.8%, substantially below expectations.
"China's economy needs more stimulus because the headwinds are pretty strong and today's data is much weaker than consensus," Larry Hu, head of Greater China economics at Macquarie Group in Hong Kong told the Reuters Thomson news agency on Wednesday.
"The economy is going to continue to slow down. At a certain point, policymakers will have to step up stimulus to support infrastructure and property. I think it could happen by the end of this year."
Exacerbating China's problems is the trade war with the United States, and a new round of tariffs to be applied from 1 September on around $150 billion worth of Chinese goods. The tariffs were originally to be imposed on $300 billion worth of goods, however U.S. President Donald Trump did an about-turn on this on Tuesday.
On Monday China re-set the yuan at a lower level drawing criticism from the U.S. which recently designated the country a currency manipulator.
With its economy sliding, which it has done now for a number of years, a corresponding slide in the yuan would be expected.
Stocks in China held their ground on Wednesday despite the disappointing data. In Shanghai, the composite index rose 0.44%, while the Hong Kong Hang Seng gained 0.08%.
Get a daily dose of Chile Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Chile Sun.
More InformationVienna - The climate crisis was the unexpected guest at this week's gathering of the OPEC bloc of oil producers ...
LA PAZ, BOLIVIA - With its top leader absent, the party of Evo Morales gathered Saturday in the Bolivian city ...
Barcelona [Spain], Dec 8 (ANI): Argentina striker Lionel Messi on Saturday (local time) surpassed Cristiano Ronaldo to record the most ...
Cape Town - The way the Springboks Sevens team came together over the three days of the Dubai Sevens contributed ...
Liverpool - Chelsea slipped to their third Premier League defeat in four matches on Saturday as Everton bounced back from ...
London - Rampant Liverpool beat Bournemouth 3-0 to lock down the Christmas number one spot ahead of Saturday's Manchester derby ...
NEW YORK, New York - A robust jobs market in the U.S. may help the country avoid a recession. Figures ...
TEHRAN (Tasnim) - China Friday said it had taken 'reciprocal' measures against US diplomats in the country, who will have ...
SYDNEY, Australia - Stocks in Asia made a welcome return to the black on Friday, to close out what has ...
BEIJING, China - The Asian Development Bank (ADB) has approved a $300 million results-based lending program with private sector involvement ...
NEW YORK, New York - U.S. stock markets made minor gains on Thursday as speculation over the outcome of trade ...
DUSHANBE, Tajikistan - Tajikistan is reportedly on the cusp of selling a stake in its main industrial concern to a ...