Chinese Economic Cool Downs Ahead of Trade War Impact

July 16, 2018 Share Print 0

China’s huge economy is cooling just as trade tensions with the United States are heating up.

The world’s second-biggest economy grew by 6.7% in the second quarter of the year.

That was slightly lower than the previous quarter and is China’s slowest rate of quarterly growth in almost two years.

The official figures released Monday suggest China is still on track to meet the government’s 2018 target of about 6.5%, although the intensifying trade clash with the United States means the rate of growth is likely to continue to slow this year.

Analysts have previously forecast that trade tensions could shave up to 0.5 percentage points off Chinese growth this year, depending on the intensity of tariffs.

Earlier this month, the Trump administration and China imposed tariffs of 25% on $34 billion of each other’s exports. US tariffs on an additional $16 billion of Chinese goods are coming soon.

via CNN

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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 has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. 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.