There are concerns as to whether China economy will recover globally as a result of its declining industrial output.
In January and February, the production went up by 5.4%- the worst growth ever recorded since 2008.
China is diversifying its economy by focusing it on consumer spending rather that export dependent and investment.
UK minster referred to the slowdown as being a “dangerous cocktail of risks” that will hamper the recovery from the 2008 financial crisis.
According to the data that was recently released, the exports from China went down by 25.4% in February compared to the figures recorded in the same month in 2015.
The retail sales that were recorded in the first two months of 2016 were lower than the analysts had expected- 10.2%. They had predicted a 10.9% rise.
Zhou Hao who is a Commerzbank economist informed Bloomberg that as the industrial output keeps on slowing down, a worrying picture is obtained. He said that “The overall growth profile remains still gloomy.”
The governor of the People’s Bank of China, Zhou Xiaochuan, informed that the government’s 6.5% GDP growth in five years time is achievable even with no measures that would stimulate the economy.
“Excessive monetary policy stimulus isn’t necessary to achieve the target,” he said. “If there isn’t any big economic or financial turmoil, we’ll keep prudent monetary policy.”
As he prepares to present a budget on Wednesday, Mr. Osborne stated that the changes in the interest rates, failing oil prices and political instability in Middle East would have a negative impact on China Economy as it tries to recover globally.