China is home to one of the world’s greatest economies. Although the People’s Republic of China hasn’t always been an economic powerhouse, the country’s economy has grown significantly over the past two to three decades. China has even managed to have its national economy ranked as the largest in the world in terms of purchasing power parity, or PPP, and the second-largest globally in terms of gross domestic product. The United States economy currently ranks first in gross domestic product and second to China in purchasing power parity.
Since the economy of China hasn’t been in full swing for as long as that of the United States, the Asian country’s economy has been able to rack up astronomical growth statistics since the turn of the millennium.
Economic experts pessimistically responded yesterday to a report from China’s ministry of finance that the country’s nationwide retail sales figure had grown by the smallest margin in the past 16 years in terms of year-on-year growth. The country’s sales of clothing in retail stores dropped, per the Chinese federal government, something that hasn’t happened since 2009.
Experts widely credit strained trade relations between the United States and China with causing, or at least being seriously involved in, the aforementioned economic performance decreases. Some financial analysts believe that the country’s ministry of finance should soon release a stimulus package to businesses across the nation in certain sectors to bolster itself against the negative effects of its trade war with the United States.
According to the National Bureau of Statistics, the total of retail sales in China rose 7.2 percent in the 12-month period beginning in April 2018. Although a growth rate in any sector of 7.2 percent would be substantial in most developed markets, it’s the slowest year-on-year growth rate in China’s retail market since May 2003.
For comparison, the retail sector in China grew the previous month’s industry growth rate of 8.7 percent. The Chinese government had officially forecasted a growth rate for April 2019 of 8.6 percent. Many didn’t certifiably, assuredly predict that these statistics would feature the undercutting of the previous month’s forecast in terms of overall retail revenue by a major factor of 1.4 percent.
Although Chinese shoppers had begun purchasing fewer costly items like motor vehicles as early as the beginning of 2018, recent research suggests that Chinese consumers have begun purchasing fewer consumer staples, which is a big warning sign for the country’s economy.