The world’s second-largest economy is sitting atop positive forecasts from massive analysts even after an unexpected economic slowdown. The first quarter figures were gearing towards last year’s final growth of at least 6.5% and the recent meeting with US’ President Trump can spell more vigor from their budding relationship.
Industrial Revolution Pushes China’s GDP
Financial institutions and banks alike are expecting a better first quarter from the Chinese, the industrial spending and development made a big impact on the country entering 2017. Forecasts for the GDP growth are expected to reach 6.6% in 2017, along with the bounds of industrial production, forecasts are expected to be around the figures of 6.4% in March alone.
China is really pushing the industrial revolution to the next level; the forecast for industrial production is a hefty increase from January’s and February’s data. From the fixed asset investment, analysts are expecting it to keep a stronger pace at an increase of as much as 8.9% for the first three months of 2017.
Weaker Auto Sales Causes Turbulences
A little bit of downside coming from the country’s automobile sales is expected to weigh in with the current economic slowdown, retail sales figures are on the bleak side. Even with the negative figure along the auto market, analysts are still positive that it can grow up to 1.3% in March, a bigger leap of what the country felt last February at a 0.8% increase.
China, US Trade Agreement
The recent visit of the President of China, Xi Jinping with the United States very own Donald Trump has opened offers such as the; the Trump administration has been offered a better hand for the financial sector, giving them a new market access that is improving and upgraded along with the US beef exports to help aid the aversion for a potential trade war.
Both have decided to clear trade policies swiftly so negotiations can exude more produce results in the next 100 days. The more interesting outcome the meeting relayed is China dropping the beef ban on US beef imports, agricultural products are also expected to have massive boosts this coming year.
The Trump administration is also looking to ease the Chinese’s tariff on automotive imports by a whopping 25%, in return, the US will grant a greater and better protection for Chinese investments, which stands on a $45 billion last year. Finally, Washington will also alleviate its curbs on the sale of any high-tech products to china.
for your round-the-clock market update! We provide you with the latest news surrounding Forex, commodities, automobile, consumer, financial, economy, and technology. Never miss any news beat! Subscribe now!