The Second Largest Economy in the World is Going Down?
“The Middle Kingdom”, commonly known as China, the second largest economy in world, is not showing signs of economic growth in comparison to previous years. This seven years record low is causing experts to scratch their heads with worry as this turbulence evolves.
The numbers are shocking; the expected growth in the coming months is only 6.6%, immensely lower than this time last year. And this snowball is not showing any signs of slowing down, on the contrary, experts predict the GDP to fall to 6.3% in 2017. This Friday (15 July) China's National Bureau of Statistics will issue an official report where we will be able to see the second quarter's GDP data.
Since China is such a large economy, it has a major effect on all global markets, one way or another. But don't shed your tears for the Chinese economy just yet, as it's still one of the biggest, strongest economies in the world.
This economic slowdown consists of many reasons, the first one being Beijing's desire to encourage the service sector while reducing manufacturing dependence. Another concern is the high debt they need to tackle.
Some worry things are not as they seem as far as data accuracy. Experts believe that China is hiding something is the sea of numbers being published and question their accuracy. This leads us to think China might be in a bigger problem than expected.
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