China GDP growth slows to 6.6% in the first quarter
During the January-March period, in China real grow domestic product edged up 6.6%, according to a recent study made by Nikkei and Nikkei Quick News.
In spite of the fact, the estimated surge rate actually decreased compared to the previous quarter outcome of 6.8%,some financial experts point out that urgent measures taken by China’s authorities to boost economic activity are demonstrating quite positive results in the early stages and it might take up to 3-5 years to meet the government’s objective.
Investment and production in China are still struggling because of overcapacity in the production sector and a surge of units in the property sector. Apart from that exports are also descending due to the global economic downtime.
Some financial experts draw attention to the fact that the spillover effects of turmoil in the financial markets will make it troublesome for the country’s growth to considerably catch up within the next two years.
China’s authorities have introduced a number of promising measures to withstand the national economy stalling. The measures involve infrastructure investment as well as other expenditures such as easing of home purchase limits. It’s believed another temporary pickup will take place in April-June.