Fri. Aug 7th, 2020

China acknowledges that it is difficult to maintain economic growth

Prime Minister Li Keqiang acknowledged that maintaining economic growth of 6% or more is a very difficult target due to the complicated world situation.

China’s economy was “generally stable” in the first eight months of the year with GDP growing 6.3% in the first half of 2019, Prime Minister Li Keqiang said in an interview with Russian media on September 15.

“For China, it is very difficult to maintain a growth rate of 6% or more in the context of the current complicated world situation and the relatively high growth base of China. the world’s leading economies, “he said.

According to the Chinese Prime Minister, the world’s second-largest economy faces downward pressure due to slowing global economic growth as well as increasing protectionism and unilateralism. China’s GDP in the second quarter increased only 6.2%, the lowest in nearly 30 years.

Analysts think China’s economic growth is likely to be lower this quarter. US-based investment bank Morgan Stanley said it expects China’s economic growth to be 6-6.5% below the full year target set by the government.

China’s central bank on September 6 decided to cut the compulsory reserve ratio (RRR) of all domestic banks for the seventh time since 2018, helping banks “free” 900 billion people. RMB (126.35 billion USD) to support the economy is on the decline.

The US-China trade war, which has lasted more than a year, has had a major impact on both of the world’s largest economies. Beijing is expected to announce more supportive measures in the coming weeks to prevent the risk of economic recession as the US raises tariff sanctions.

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