China Economy Growth 2020January 2021
The Chinese statistics office reported on January 18,2021 that the growth in 2020 was 2.3%, probably the only global big economy with a positive growth in that year.
In the last quarter of 2020 the Chinese economy grew by 6.5% compared to the same quarter in 2019 and by 4.9% compared to third quarter of 2020, a growth higher than the prior forecasts.
China GDP ShrinkApril 2020
According to official data released on April 17, 2020 the Chinese economy shrank in the first quarter of 2020 by 6.8%, the first shrink since 1992.
In the last quarter of 2019 the economy grew by 6%.
China Growth 2020February 2020
The economists of the credit rating agency S&P published on February 8, 2020 their forecast. Due to the corona virus crisis S& P expects that the Chinese GDP will grow by 5% in 2020 compared to prior forecast of 5.7%.
The agency assumes that the virus crisis will end by March 2020.For 2021 the growth forecast is 6.4%.
China 2020 Growth ForecastDecember 2019
According to a meeting held this month China expects an economic growth of only 6% in 2020, compared to an expected growth of 6%-6.5% in 2019.
The Chinese government plans to intensify in 2020 investments in infrastructure and issue special $430 billion debentures by local authorities.
China Currency DevaluationAugust 2019
China devaluated its yuan currency on August 5, 2019 by 1.4%, dropping the Chinese currency for the first time in a decade below 7 yuan per dollar.
The move comes as a retaliation to U.S.'s decision to impose new taxes on trade with China.
China GDP GrowthJuly 2019
The Chinese GDP grew in the second quarter of 2019 by only 6.2%, the lowest growth in the last 27 years.
Preliminary estimates were a growth of 6.3% following a growth of 6.4% in the first quarter of 2019.
U.S.A. Banns China MobileMay 2019
The U.S. FCC, federal communications committee, decided on May 9, 2019 to ban China Mobile from offering telecommunications services to the U.S. market.
The Chinese company is owned indirectly by the Chinese government ,thus causing worry in the U.S. that the company may be a security risk.
China GDP GrowthApril 2019
The Chinese statistics office reported on April 17, 2019 that the GDP growth in the first quarter of 2019 was 6.4% compared to preliminary estimates of only 6.3%.
The current growth is still the lowest in the last 20 years.
For comparison the growth in the first quarter of 2018 was 6.8%.
China U.S.A. Trade WarJuly 2018
China announced on July 6, 2018 imposing customs tariffs on import from the U.S.A. totaling up to 34 billion dollars, same amount as U.S.A.'s 25% tariffs on imports from China.
Last year China's export to the U.S.A. was 4% of its GDP while U.S.A.'s export to China reached only 0.7% of the U.S.A. GDP.
China GDPJuly 2017
The Chinese national bureau of statistics reported on July 17, 2017 that the economy expanded in the second quarter of 2017 at an annual rate of 6.9%, same as in the first quarter.
The 6.9% rise is higher than preliminary forecasts by analysts of 6.8% rise.
China Credit Rating DowngradeMay 2017
Moody's credit rating agency downgraded on May 24. 2017 China's credit rating from Aa3 to A1.
The downgrade reflects concern about the slowing economy and growing national debt.
The agency raised China's outlook from negative to stable.
The credit rating by other rating agencies is AA by S&P and A+ by Fitch.
China Interest CutAugust 2015
The Chinese central bank cut on August 25, 2015 the annual loan interest rate by 0.25% to 4.65%. The interest rate cut by the central bank is the fifth cut since November 2014.
The bank also cut the ratio for cash reserves of the banks.
The new measures are aimed to increase the credit terms of the Chinese economy.
China Becomes the Biggest EconomyDecember 2014
According to a release by the IMF China is now the world biggest economy surpassing the US.
The IMF estimates that China's GDP is $17.6tn compared to the US 17.4tn.
While in terms of GDP per person the US is about four times higher than China in terms of PPP, purchasing power parity, China takes the lead.
China Interest Rate CutNovember 2014
The Chinese central bank cut on November 21, 2014 its one year loan rate by 0.4% down to 5.6%.
The one year deposit rate was cut by 0.25% to 2.75%, The loan rate cut is the first cut since July 2012.
The new reduced interest rate will help businesses to get cheaper loans.
China Stock Market UpdateNovember 2014
The Chinese authorities announced on November 10, 2014 that next week the Hong Kong stock exchange will be lined to Shanghai stock exchange.
The effect of the new decision is that purchase of Chinese stocks, estimated at Dollar 4.2 trillion, will be now allowed to foreign investors.
Before the new decision such purchase was forbidden for foreigners.
China Switzerland FTAJune 2014
The free trade agreement, FTA, which was signed between the two countries on July 6, 2013 will enter into force on July 1, 2014.
In 2013 China was the largest buyer of Swiss industrial products in Asia.
The FTA will strengthen the position of Switzerland as a central business location.
China PMI October IncreaseNovember 2012
The manufacturing managers index, PMI, increased in October 2012 to 50.2 points compared to 49.8 points in September and 49.2 points in August.
The new PMI which exceeds 50 points is pointing to intensified activity of the Chinese economy.
China PMI DecreaseSeptember 2012
The Chinese manufacturing purchasing managers index, PMI, fell in August 2012 to 49.2 points compared to 50.1 points in July 2012, the lowest index in the last nine months and the first time since November 2011 of an index below 50 points.
In general an index below 50 points to a possible contraction in the manufacturing activity.
China's New Interest Rate CutJuly 2012
The Chinese central bank surprised on July 5 , 2012 by deciding to cut the interest rate for the second time within one month.
The interest on deposits was cut by 0.25% down to 3.0% while the lending rate was cut by 0.31% down to 6.0%.
The new interest cut is aimed to further boost the Chinese economy growth.
China's 0.25% Interest CutJune 2012
The Chinese central bank cut on June7 , 2012 the Chinese one year lending rate by 0.25% down to 6.31%.
The dramatic cut which is the first since 2008 is aimed to boost China's economic growth.
China's 4.5% Inflation RateFebruary 2012
According to the Chinese National Bureau of Statistics the annual inflation in China accelerated to 4.5% in January 2012 compared to 4.1% in December and well above the analysts' forecast of 4.0%.
The hike follows five months of steadily easing rates following the 6.5% peak in July.
Fitch May Downgrade China's RatingSeptember 2011
Fitch credit rating agency warned on September 8 that it may downgrade China's yuan debt rating from the current AA- within two years.
The warning follows worry regarding bad loans after record sums which were lent by Chinese banks in the last two years.
Fitch downgraded in April 2011 China's long term local currency debt outlook from stable to negative.
Chinese Reserve Ratio 0.5% RiseJune 2011
The Chinese central bank decided to raise the banks' reserve ratio by 0.5% to 21.5%.
The rise, effective June 20 is the sixth rise this year.
The new decision is aimed to lower the volume of bank loans following concerns of the 5.5% May inflation, the highest in the last three years.
China's Interest Rate RiseApril 2011
The Chinese central bank raised on April 6 the interest lending rate for one year from the previous 6.03% rate to 6.31%.
The one year deposit interest increased from 3% to 3.25%.
The current rise, which is the forth rise in about six months is aimed to cool the rising inflation which increased by 4.9% in February, higher than the bank's forecast of 4%.
China Credit Rating UpgradedNovember 2010
Moody's, one of the world biggest rating agencies, upgraded on November 11, 2010 China's government bond rating from A1 to Aa3 with a positive outlook.
Following China's GDP growth of 9.6% in the 3rd quarter compared to the same quarter in 2009 Moody's expects a 9%-10% growth of the Chinese economy in 2010 and a growth of 8%-9% in 2011.
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