China on Track to achieve 2016 GDP Forecast

China on Track to achieve 2016 GDP Forecast


Welcome to illuminati silver, we tell you
the truth about silver. Today is Wednesday 19th October 2016 and we
are briefly commenting on China’s GDP figures for the third quarter announced today.
China’s economy maintained a solid rate of growth in the third quarter, helped by a government
stimulus programme and a property boom. Gross domestic product expanded 6.7% year-on-year
in the July to August period, in line with analyst expectations and matching the pace
of growth recorded in the previous two quarters. The figure falls within Beijing’s growth target
of 6.5% to 7% for the calendar year. China’s National Bureau of Statistics said
that China’s economy had performed “better than expected” in 2016, despite a slowdown
in exports. Growth was helped by a 7.1% increase in real
estate investment and a 7.6% increase in services. Analysts fear that China’s property market
may be overheating and have also expressed concern over Beijing’s high debt levels.
The government released guidelines last week for reducing debt, yet past pledges have often
been ignored as rampant credit growth fuels surging house prices in the nation’s largest
cities. Retail sales gains of 6.1% outpaced the rise
in industrial production whilst Investment spending continues to be led by the public
sector. State firms achieved a 21.1% jump in investment, while private investment advanced
2.5%. The fiscal deficit doubled in September to
861 billion yuan (the equivalent of $128 billion) from a month earlier as the government moved
to support growth Julian Evans-Pritchard, an economist at Capital
Economics in Singapore stated: “Economic activity seems to be holding up
reasonably well, with few signs that a renewed slowdown is just around the corner ……… Nonetheless,
the recent recovery is ultimately on borrowed time given that it has been driven in large
part by faster credit growth and a property market boom, both of which policy makers are
now working to rein in.” So there we have it. China is on track to
achieve its annual growth forecast despite concerns of an overheating economy. As we
pointed out in our last video, China, India and a number of developing countries may just
keep the world’s economy out of complete recession.
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7 Comments

  1. Great report and news but can you trust chinese announcements or do they make the stats fix the predictions , heavy Chinese debt driving growth isn't really growth at all

  2. "Home prices in China are in a very nice upward trajectory. I would say the nationwide statistics don't show the extent that home prices have rebounded in tier one and tier two cities," Erwin Sanft, head of China strategy at Macquarie, told CNBC in Hong Kong Wednesday after the data were released.

    The country’s debt has ballooned to almost 250% of GDP thanks to Beijing’s repeated use of cheap credit to stimulate slowing growth, unleashing a massive, debt-fuelled spending binge.

    Chinese debt is holding back the world economy.

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