FRIDAY, 23 AUG 2019

 

CONNECT

Facebook Linked In Twitter
GAP_Group_2019_728x90px
GloriaJeans_266x90px
IMH LTD

Savvas Perdios: News in September Over Flights to Cyprus and German Market

Prodromou: OCCRP Report Acknowledges that Cyprus President did not Break the Law

IMH LTD
GAP_Group_2019_468x60px

INTERNATIONAL

brought to you by CIPA

Donald Trump Claims Trade War is Working as China's Economy Slows

Donald Trump Claims Trade War is Working as China's Economy Slows

Chinese economic growth falls to slowest pace since 1992 – but is expanding faster than the US, The Guardian reports.

Donald Trump has claimed that his tariff battle with China is working after official data from Beijing showed growth in the world’s second biggest economy dropping to its slowest pace since 1992.

The US president said the impact of his protectionist measures had been to cause an exodus of companies from China, as Beijing announced that its annual rate of expansion had slowed from 6.4% to 6.2% in the second quarter of 2019.

In tweets that were immediately challenged by economists, Trump said his tough action had forced China’s leaders to the negotiating table.

Responding to evidence that trade tension was one factor behind the slowdown, Trump said: “China’s 2nd Quarter growth is the slowest it has been in more than 27 years. The United States Tariffs are having a major effect on companies wanting to leave China for non-tariffed countries. Thousands of companies are leaving. This is why China wants to make a deal....

“...with the U.S., and wishes it had not broken the original deal in the first place. In the meantime, we are receiving Billions of Dollars in Tariffs from China, with possibly much more to come. These Tariffs are paid for by China devaluing & pumping, not by the U.S. taxpayer!”

The US has imposed tariffs on $250bn (£199bn) worth of Chinese goods including chemicals and machinery, while China has placed import levies on $110bn of US goods such as soybeans.

Economists pointed out that China’s economy was still growing four times as fast as that of the US and that the tariffs imposed on Chinese goods were hitting Americans. Trevor Greetham at Royal London Asset Management said: “Sorry to break it to you but tariffs are paid by the importer – US taxpayers in this instance.”

The 6.2% GDP figure was within the government’s target range of 6.0%-6.5% for the year, down from the 6.6% growth China posted in 2018.

“Economic conditions are still severe both at home and abroad, global economic growth is slowing down and the external instabilities and uncertainties are increasing,” said bureau of statistics spokesman Mao Shengyong.

“The economy is under new downward pressure,” he said.

Beijing has introduced measures this year to boost the economy, but they have not been enough to offset a domestic slowdown and softening overseas demand made worse by a punishing trade war with its biggest trading partner country, the US.

Exports to the world rose only 0.1% during the first six months compared with the same period last year.

 

Analysts widely expect Beijing to step up support for the economy in coming months and the prospect cheered investors in China where stocks rose.

Economists were not convinced that it would have a decisive impact.

Julian Evans-Pritchard, senior China economist at the consultancy Capital Economics, said he doubted more supportive fiscal policy would mark the start of a turnaround and that Beijing’s leaders faced more weakness in the economy.

“We think that construction activity will come under pressure in the coming quarters as the recent boom in property development unwinds,” he said. “Combined with increasing headwinds from US tariffs and weaker global growth, we expect this to culminate in a further slowdown in economic growth over the coming year.”

According to the official data, industrial output rose 6.3% in June, from 5.0% in May, which had been the slowest increase since 2002.

But growth in infrastructure investment has retreated from years of near 20% expansion – coming in at 4.1% growth in January-June – and imports and exports both shrank in June from a year earlier.

Urban unemployment ticked up to 5.1% for the month, from 5.0% in May.

China’s 1.3 billion consumers have continued to provide support for the economy with retail sales up 9.8% on-year in June, up from 8.6% in May.

Sales of big-ticket items such as cars have not held up, though, with sales down 12.4% in the first half of the year, according to the China Association of Automobile Manufacturers.

MORE ON INTERNATIONAL

Johnson and Macron to Hold ‘Frank’ Brexit Talks in Paris

French observers fear Britain’s PM is setting up France to take blame over no-deal ...

Apple Accidentally Reopens Security Flaw in Latest iOS Version

Apple users are being warned to exercise particular caution over their cybersecurity for ...

Trump: Administration is Considering Payroll Tax Cut

Trump said on Tuesday, August 20 that he's thinking about pushing for a payroll tax ...

FROM AROUND GOLDNEWS

   

Celebrating 20 Years of the Porsche 911 GT3

The unveiling of the first Porsche 911 GT3 in March 1999 at the Geneva Motor Show signalled the start of a new era for discerning sports car drivers. Like ...
   

EU Migration to UK at Lowest Level Since 2013, Disputed Data Shows

Immigration to the UK from the EU remains at its lowest level since 2013, according to disputed estimates from the Office for National Statistics, The Guardian ...
   

Nicosia Mall Deal for €96 Million

The Bank of Cyprus, after monthly negotiations, has reached an agreement to sell its 64 % share in the Nicosia Mall. The agreement between the Bank and the ...
   

Spar Cyprus Adds Two New Stores to Its Network

Spar Cyprus has announced that it has converted two former Debenhams Food Hall outlets in Nicosia and Limassol to Spar supermarkets, the European Supermarket ...
   

Ryanair Fails in Court Attempt to Stop 48-Hour Strike by UK Pilots

Ryanair has failed in a legal effort to prevent a 48-hour strike by British pilots in the run-up to the bank holiday weekend, but claimed passengers were ...
   

Johnson and Macron to Hold ‘Frank’ Brexit Talks in Paris

French observers fear Britain’s PM is setting up France to take blame over no-deal departure, The Guardian reports. Emmanuel Macron will hold a ...
   

Cabinet Decides to Set Up Investment Fund, ‘Estia” Scheme to Start Operating on September 2

The Cabinet decided on Wednesday to set up an Investment Fund, following a relevant proposal made by the Finance Minister, with the state contributing to the ...
   

Prodromou: OCCRP Report Acknowledges that Cyprus President did not Break the Law

The report of OCCRP (Organized Crime and Corruption Reporting Project) acknowledges from the beginning that the President of Cyprus Nicos Anastasiades has no ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

Limassol_Economic_19/06-18/10_300x250px
Gold_Digital_Edition_300x250px

IMH LTD