It is no longer unknown to many what an emerging superpower China has become, not only to Asia but to the whole world. The Chinese economy is on an upward momentum and is only the beginning of many more good things to come for China. Even Western countries are surprised at how steadily China’s economy kept on going up without showing signs of ever slowing down.
Many of the world’s economies suffered badly over the last few years. The United States is not an exception. The U.S. itself suffered badly from the last recession and is still recovering. While how the U.S. economy will fare is still a mystery to everyone as doubts about Trump’s capability in leading the country to greatness fills the minds of many and his first few policies continue to divide the country, China is stronger than ever and has surpassed everyone’s expectations.
China’s economy stormed back in the first quarter, clocking its first back-to-back acceleration in seven years and bolstering the global growth outlook just as signs of subdued consumer spending have surfaced in the U.S.
The Chinese economy accelerated to a better-than-expected 6.9 per cent, powered by strength in housing, infrastructure investment, exports and retail sales. And it looks to have done so without worsening credit risks, a welcome development for economists worried about the nation’s towering debt burden.
The world’s second-biggest economy accounted for about one-third of global growth last year and, given the strong first quarter data, is on track to contribute at least as much in 2017, according to Rob Subbaraman, chief economist for Asia ex-Japan at Nomura Holdings Inc. in Singapore.
“China, at least in the near term, is in a sweet spot with growth momentum strong and inflation pressures easing,” said Subbaraman. “Whichever way you dice it, the first quarter was a strong set of numbers.”
This is no longer surprising as we can all see how much China has contributed to the world economy in general. Many nations import resources and manpower from China because they are undeniably cheaper. This is one of the first drivers of the Chinese economy and continues to do so up to these days. Name a popular brand and they likely have a factory somewhere in Mainland China. Tourism is also picking up now that China has opened its doors to foreign tourists who can’t wait to explore all the hidden wonders of this great nation.
China’s economy grew 6.9 percent in the first quarter of 2017, government data showed Monday, beating expectations in the latest sign of stabilisation for the world’s second-largest economy.
Beijing has said it wants to transition away from a reliance on debt-fuelled investment and towards a consumer-driven economic model, but the transition has proved bumpy.
The economy grew at just 6.7 percent in 2016, its slowest rate in a quarter of a century.
“For the first time in the recent years, China starts a year with a strong headline GDP,” Raymond Yeung of Australia & New Zealand Banking Group told Bloomberg News.
“Thanks to strong investment and property, the economy is performing well.”
Like with any other nation, there are factors that can affect the Chinese economy and China is still susceptible to those factors as well. Fortunately, they have their booming tourism to thank for that got its back in times of crisis. The western influence is always there no matter how hard the Chinese government tries to shut them off and spare their citizens from outside influence. Despite it all, Chinese tourists are still growing and they are traveling in and out of China in bigger numbers than ever. Now, who would say that most Chinese live in poverty when most of them can afford to go on luxurious travels on different corners of the globe? It just goes to show that the Chinese economy will weather the storm and still emerge on top after all.