Slowing of China's GDP growth

Chinese economic growth has slowed to its lowest level in 24 years – at 7.4% growth, it is considerably lower than previous peaks of double-digit growth rates. However, its economy has still boomed by more than US$700 billion in just last year alone. It still remains the world’s fastest-growing major economy, topping the US, EU and Japan. By some measures, it is already the world’s largest economy.

Although there is some concern in international media over this slowing down, Chinese media outlets are quick to insist that slower growth is the “new normal”, and that the economy is still resilient. In light of the improvement in the regulatory environment, and more emphasis on high-quality, sustainable growth, perhaps “gloom-mongering” is unwarranted. Although the World Bank has forecasted that India will surpass China in GDP growth in the years to come, it does not seem that China is slowing down.

In 2013, Premier Li Keqiang stated that 7.2% growth is the minimum required to ensure that enough new jobs will be created and that unemployment rates can be kept down. This number is already attractive – especially for sluggish Western economies.