Beijing: China, the second largest economy, slumped to 6.1% last year. This is the lowest growth the country witnessed in the last 29 years and was caused by trade war with the United States and poor domestic demand. The National Bureau of Statistics gave out the figures yesterday.
China grew by only 6.1% last year which is much lower than the 2018 growth rate of 6.6%. In 2017 the growth rate stood at 6.8%. Clearly, the world’s second biggest economy is undergoing a continuous slowdown for consecutive years.
The Chinese, though, are relieved that that the economy has not fallen below 6%, which is a psychological barrier. The barrier was mandated by Chinese President Xi Jinping, below which it might cause serious disruption to the economy.
The data comes after the US and China signed a phase one deal which put on hold the continuing trade war which put 25% tariffs on each others’ products. The Chinese economy was hit hard by the trade war between the two countries.