China revealed its 2019 GDP growth this Friday at it showed that Chinese officials' estimates of an easing economy by 2020 were misplaced. China's economy was at its slowest in three decades by 2019. Experts claimed that the results were indicative of ongoing economic challenges that the world's second-largest economy would face this year.
China's GDP growth for 2019 fell short of Beijing's targeted range of 6 to 6.5 percent for that same year, reported CNN. Although the results showed that China's economic growth was at 6 percent by December 2019, it was still reported to be the slowest growth in three decades.
After the announcement was made, trade tensions were already easing between the US and China after the finalization of phase one of the trade deal. The initial agreements were expected to uplift the market players' confidence in China's economy.
According to China's national statistics chief Ning Jizhe, Chinese officials looked into the benefits that would be brought about by the trade truce. Vice Premier Liu He also told reporters after signing the deal last Wednesday that China would depend lesser on debts and would be driven by an innovation this year.
Analysts also highlighted that China buying significantly higher products from the United States would boost business confidence by 2020 as well. Last Thursday, Fitch Ratings then suggested that China's economic growth for 2020 might reach 5.9 percent compared to the previously forecasted 5.7 rates.
According to the South China Morning Post, China's industrial production depleted by 5.7 percent in 2019 while retail sales were down by 8.0 percent. However, industrial production in China's output regarding the mining, manufacturing, and utility markets was up by 5.7 percent, which was greater than the analysts' estimates of just 5.6 percent.
Other industries that grew comprised of fixed asset investments that improved by 5.4 percent in 2019. It was reported to be a slight improvement from November 2019's results which only showed a 5.2 percent increase. The values were said to be the joint lowest in China's history.
In December of 2019, the industrial economy benefited the most from the announcement that phase one of the China-US trade deals was a certainty. Its productions grew by 6.9 percent compared to analysts' forecasts at 5.9 percent. It was also revealed to be the fastest rate growth of the industry since March of 2019.
It was also showed that China's exports grew by 7.6 percent from 1.3 percent in November. Similarly, Chinese imports also rose by 16.3 percent in December compared to November's 0.3 percent.
