Chine : l’économie change de file

Infographie : François Descheemaekere

Changing Lanes

[Caixin Online]

The economy is indeed slowing down, but there is no reason to panic as long as the government steers the country toward reforms

Is China's economy moving out of the fast lane? Growth indicators have mostly fallen below market expectations, and organizations have been quick to lower their growth forecasts. The State Council acknowledged last week that downside risks were increasing and said the government would fine-tune policies to ensure stable growth. It was a far more moderate response than in 2008 when the global financial crisis struck. Nonetheless, leaders are clearly worried about the economic slowdown. Many analysts share their fears, and there's been no shortage of calls for another round of stimulus. We've known for some time that China's economy was shifting to a lower gear. But we've become so accustomed to its breakneck pace that, at the first signs of an actual slowdown, all we can see is unrelieved gloom. It's not wrong to worry. But rational analysis shows that though the downswing is worse than initially expected, it can be explained.
Weak foreign demand since the second half of last year has led exports to drop, while the post-2008 market stimulus measures have eased. These are the main reasons for slowing growth.
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