China’s GDP was up 6.1% for the year, the slowest rate seen since the country’s economic boom began.
Trade tensions and weakening domestic demand have held the Chinese economy back in recent years. Investment has been slow as well, leading the government to attempt supporting growth with new spending plans. However, almost two years of trade tensions with the US have taken their toll.
While the Chinese economy has been slowing down, hopes are still high in China. Rising hopes over a new trade deal that will end the current trade war have helped boost business and manufacturing confidence data.
In 2019, growth fell to 6.1% from the 6.6% recorded in 2018. These rates are strong by global standards and still fall within the government’s target range. However, the government of China previously set the ambitious goal of doubling the country’s GDP and average income in the decade to 2020, making this year a crucial year. It is possible for this goal to be reached if China can maintain minimal growth of 6% per year, according to analysts. According to Reuters’ sources, China will lower the growth target for 2020 to around 6%. The year’s growth targets will be announced in March.