Over 10 years we help companies reach their financial and branding goals. Maxbizz is a values-driven consulting agency dedicated.

Gallery

Contact

+1-800-456-478-23

411 University St, Seattle

maxbizz@mail.com

The Impact of China's Economic Slowdown – Investopedia

China’s central bank unexpectedly slashed interest rates after data showed its retail sales and manufacturing output grew less than expected, signaling central bankers want to avoid an economic slowdown in China, the world’s second-largest economy.
Retail sales rose 2.7% in China in July compared to expectations of 5% growth, while industrial production grew 3.8%, below expectations of 4.6%. Both retail sales and industrial production slowed from the month before. According to a government spokesman, “the momentum of the economic recovery has slowed. More efforts are needed to consolidate the foundation of economic recovery.”
The slowdown comes in the wake of China's “zero COVID” approach to containing COVID-19 with local lockdowns and amid a real estate slowdown. Oil prices fell on the slower-than-expected economic data, with light sweet crude down as much as 5%, below $90 per barrel. 
The retail sales data may signal problems ahead for Tesla and GM. Tesla generated roughly 26% of its sales from China last year, while GM generated about 11% of its sales in the country. China is the world’s largest market for electrical vehicles.
The industrial output data could also impact industrial giants like 3M and Caterpillar. 3M gets 11% of its total sales from China. Caterpillar doesn’t provide its sales numbers for China, but generates about 20% of its sales in Asia.
“China’s economy appears to be suffering from a crisis in confidence among consumers and businesses. Retail sales, industrial output and investment are all slowing, and the unemployment rate for young workers is near 20%. That will impact China’s domestic economy and its trading partners severely in the future,” said Caleb Silver, Editor-in-Chief of Investopedia.
News
News
International Markets
Earnings Reports and News
News
News
When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. Cookies collect information about your preferences and your devices and are used to make the site work as you expect it to, to understand how you interact with the site, and to show advertisements that are targeted to your interests. You can find out more about our use, change your default settings, and withdraw your consent at any time with effect for the future by visiting Cookies Settings, which can also be found in the footer of the site.

source

Author

Joseph Muongi

Financial.co.ke was founded by Mr. Joseph Muongi Kamau. He holds a Master of Science in Finance, Bachelors of Science in Actuarial Science and a Certificate of proficiencty in insurance. He's also the lead financial consultant.