Chief Economist Olivier Blanchard of the IMF. Photo EPA 
The Chinese economy grew by 7.4 percent in 2014. That is the weakest growth since 1990, according to figures released Tuesday by the Chinese national statistical office. Yet the International Monetary Fund is pleased that China growth model trying to throw
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The growth of the second economy of the world was 7.4 percent in 2014 slightly below the target of the Chinese government, which is 7.5 percent had targeted. In 2012 and 2013, China’s economy was still 7.7 percent ahead.
Still, chief economist Olivier Blanchard, the IMF welcomed China’s growth, reported Reuters on Tuesday. According to Blanchard lower growth in China reflects a good decision by the Chinese policymakers to rebalance the economy.
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China: export growth and investment
China-opt many years on a system where export growth, made possible by low wages, combined with strong domestic investment. The government-controlled banking system provides government related companies cheap loans, which the huge expansion of the construction and infrastructure is fed.
All of this resulted in strong growth rates, but two groups are taking the child become the account:. Chinese consumers and small and medium enterprises in the private sector
Chinese low- and middle put relatively much money aside as savings buffer. They do so because of the lack of good social services. However, through the manipulation of interest rates in favor of granting loans to large state-owned enterprises, the low interest rates on savings.
All this makes for a relatively sluggish domestic consumption. Smaller private Chinese companies in their growth inhibited by limited access to the official bank lending. They are highly dependent on informal channels such as financing through family and friends.
It is clear that China can not just continue to bank credit leaning investment in infrastructure and other construction projects. A change must come to a stronger emphasis on consumer spending on the one hand, and growth of the private SMEs on the other side. But that also means that the overall economy that grows more slowly.
Slower growth
The Chinese economy has all this in the short term to deal with a cooling real estate market and a less booming industry, as a result of slower global growth. For the economy not to let cool quickly, interest in China is reduced and large infrastructure projects accelerated.
In the fourth quarter of 2014, the growth rate was 7.3 percent per annum. This figure is better than expected. Economists expected on average an increase of 7.2 percent.
The Chinese statistics bureau also reported Tuesday that industrial production in China in December rose by 7.9 percent year on year, after growing by 7 2 percent a month earlier. Chinese retail sales grew by 11.9 percent. Both figures were better than average predicted
IMF:. Chinese growth below 7 percent in 2015.
The International Monetary Fund (IMF) on Monday lowered its growth forecast for China to 0.3 percentage point to 6.8 percent in 2015 and by 0.5 percentage point to 6.3 percent in 2016.
The world economy will grow over the next two years in a broad sense also was weaker than previously thought. The falling oil price is a windfall, but that is offset by disappointing developments in the eurozone, China, Russia and Japan, the IMF predicted Tuesday.
The IMF expects the world economy in 2015 by 3.5 percent grows and provides for 2016 an increase of 3.7 percent. For both years, the prognosis is 0.3 percentage points more gloomy than in October. That’s because of disappointing developments in all regions except the United States
Eurozone:. 1.2 percent growth in 2015.
The euro is the next time aided by the strong decline oil prices, new measures of the European Central Bank, dwindling savings and the declining value of the euro.
It is notable growth, with respectively 1.2 and 1.4 percent in 2015 and 2016, probably lower than previously thought. According to the IMF roads windfalls not outweigh the weak investment. Which are mainly in the export sector under pressure due to disappointing growth in emerging markets.
The IMF was also particularly pessimistic about the prospects for poorer countries that depend on exports of raw materials. Therefore, the growth forecast for Latin America was reduced by almost a third, to 1.3 percent this year, and the knife went in expecting to include Nigeria.
The Russian economy, according to the fund this year even 3 percent smaller, while three months ago was still expected a slight growth.
The IMF did not publish a new forecast for the Dutch economy, which follows in April. In October, the fund predicted growth of 1.4 percent for our country in 2015.
Source: Reuters / Z24
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