FX.co ★ Are world’s economies to be hit by China’s economic slowdown?

The Chinese economy develops in top gear compared to its counterparts. Despite financial crisis and political tensions around the world, the People’s Republic of China is still gaining momentum. However, the well-oiled machine of China failed showing rather disappointing results. According to the National Bureau of Statistics, the Q1 economic growth dropped 0.3% compared to the previous quarter.
The rest of the macroeconomic indicators are not so promising too. Experts are of the opinion that structural reform the government is implementing now is responsible for the slump. Assuming China’s scale and its position in Asia, analysts project that the Chinese economic slowdown might have an adverse effect on the region. The countries, which export is underpinned by China, will suffer the most.
It should be noted that the Chinese government is carrying out a painstaking work to stimulate the growth of the national economy by any means. To support the small and medium business, the list of tax exemptions was revised. Besides, the free trade zone in Shanghai has been in effect since early 2014. Several important infrastructure projects, which are planned for this year, are supposed to revive the Chinese economy as well. One of them is large-scale modernization of the national railway sector. Experts worldwide stay abreast of any change taking place in China, one of the largest global economies. Moody's expects the Chinese GDP to post less-than-expected growth. Most of specialists believe that China’s economy is likely to expand 7.5% and 7% in 2014 and 2015 respectively.