China’s GDP for 2017 increases for first time in seven years
January 19, 2018
China’s economy grew at a rate faster than was expected in the fourth quarter of 2017, as exports helped put up the growth rate for the first time in seven year. There had been concerns that restrictions on industry and credit would result in a continued decline in growth.
Figured released on yesterday showed that China’s GDP grew 6.8% in the fourth quarter, better than the previous year of 6.7%.
Growth for the full 2017 year also picked up to 6.9%, the first increase since 2010. The Chinese government target is around 6.5%. GDP totalled 82.7 trillion yuan (about $13 trillion) in 2017, up from around 41.3 trillion yuan in 2010, when China first overtook Japan.
The increase in growth is being attributed to a pickup in the global economy over the past year, driven by a surge in demand for technology products, which China is a main manufactures. However China’s over production will cause problems for countries around the world that see their domestic industries collapse due to Chinese imports. This is more evident in the US where the President Donald Trump has been considering action on tariffs for steel and other raw materials from China. This could cause problems for growth further down the line if any action is taken.
However there is still more work the Chinese government intends to do to cut down on pollutions, which could hurt the industrial sector even more. The central government has made it a priority to improve the lives of Chinese citizens and tackling pollution is high on the agenda.
Other factors in the economy showed a slowdown. Such as the 9.4% growth in retail sales which is the slowest rate since February 2006, down from 10.2% in November. This could be a sign of the government’s policy to rein in credit so not to allow a bubble of debt amongst people in China.
There has been reports of irregularities of data from local government areas. The Head of China’s statistics bureau Ning Jizhe has told reports that he will look into reports of these and deal with them according to law.