China GDP To Show Slowdown Heading to New Normal

The Chinese economy is slowing down. The lower than expected growth quarter over quarter is no surprise after China fell behind government forecasts. The change of tone from politicians has helped the market not to overreact to lower than 7% growth. A “new normal” is to be expected from an economy than enjoyed such a sustained period of double digit growth. The forecast for the first quarter growth of China’s economy is 7.0%. The sometimes pessimistic tone of Chinese politicians have made forecasters underestimate growth consistently. Case in point last month’s forecast of 7.2% was narrowly beat by a 7.3% figure. The market rewarded the better than expected growth figure with stock market gains.



Commodity currencies will be closely following this release as they could get a boost from a higher than forecasted GDP that in turn could hint at a higher demand from the Asian economy.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza