It is time for Chinese policymakers to take some bold, or even right to say some bolder, decisions to ward off fears of a sharper slowdown of economy. On Tuesday the country is to come up with its quarterly economic growth and it is expected to be the weakest in about seven years.
Worries have been stocked from Washington to Wellington about the rapidly deteriorating economic conditions amid fresh plunge in Chinese stock markets and weakening yuan currency.
According to analysts, the fourth-quarter gross domestic product (GDP) growth may slow to 6.8 percent from a year earlier and said to be the weakest since early 2009.
Experts say it is the poorest showing in a quarter of a century for the world’s second-largest economy.
If believed to some watchers, the real growth is even weaker than what the official data suggests and it could be as low as 2.4 percent amid signs of further downward pressure.
Economist Nie Wen at Hwabao Trust in Shanghai said, “The economy still faces relatively big downward pressure this year despite signs of stabilization in property and auto sales… ”
The factors which have mainly compounded to the problems include slowing down of investment, high debt levels, soft property market, factory overcapacity, and weak exports.
The policy makers are now in question by foreign investors whether the country has the ability of managing the slowing down of economy.
Meanwhile, the Shanghai stocks plunged to 13-month lows on Monday.
Amid all these, some experts believe the slowing down is not melting down and the economy may improve in 2016.
