Monday, 1 February 2016

China- A decline in manufacturing

The world manufacturing superpower has once again seen a decline in production and has now reached a point at which it is at the lowest level since 2012.
The first 3 months of activity is considered to be the weakest in China due to the disruptions caused by the seasonal Chinese new year.
China's growth is likely to be lower than its target of 6.5% for 2016 as it only grew by 6.9% in 2015 and 7.3% in 2014. This slowing growth is a major concern for investors around the world as the country until recently has been a key player in the drive in the global economy.
Fears over slowing momentum in China and Beijing's handling of the economy combined with concerns over plummeting oil and commodity prices to pull down global stock markets through the start of 2016.
As the economy slows and the currency- the yuan weakens, the Chinese are moving their (hot) money out of the country which is contributing to a loss in investment.

No comments:

Post a Comment