Page 59 - 15FEB2019E

ECONOMY

the bubble burst and it went into a
downward spiral, with the Shanghai
composite crashing about 40 percent.
China’s economy grew 6.6 per cent
in 2018, its slowest pace in almost 30
years, confirming a slowdown in the
world’s second largest economy that
could threaten global growth.
After years of breakneck expan-
sion, official data has now confirmed
that China’s growth in 2018 was the
country’s slowest reported rate since
1990 and down from 6.8 per cent in
2017. The data, puts pressure on Beijing
to reach a deal with Washington to
end the bruising trade war. The latest
economic figures suggest China may
no longer be able to help shore up

Call it Modism
Economy or a result
of consistent
economic polices be equally difficult, with growth likely • Downturn hurts Guangdong’s growth slump
inherited from the to recede further. Economists fear is seen as a turning point for China’s economy
UPA, India is uniquely that debt could rise further this year forecasters see the outlook for global
if the government continues to inject
placed in terms of stimulus into the economy to meet its growth as particularly uncertain.
economic prosperity growth targets regardless of a chang- Trump has pledged to impose high
tariffs on imports from China and to
ing global economy.
with its growth rate Most economists doubt China’s offi- brand the country a currency ma-
having outstripped cial GDP figures, with some estimating nipulator. He has long maintained that
that the real figure could be less than
China has been devaluing its currency
that of China for two half the rate reported by the govern- to make its exports more competitive
ment. The Chinese vice premier, Liu
on overseas markets.
successive years He, will visit the United States on 30 It is in this context that a great op-
and 31 January for the next round of portunity exists for India to outclass
trade talks with Washington. The vice China in economic growth. India is
weakling global growth. A government president, Wang Qishan, is attending facing an uncertain election with most
campaign to rein in risky debt has been the World Economic Forum in Davos political parties joining hands against
compounded by a trade war with the later this month. the present regime. The resurgent
US, hitting consumer and business The meeting would Congress is also likely to make major
confidence. Over the past few months be crucial since, China’s traditional inroads and promises to give the
consumer spending, manufacturing economic drivers, infrastructure, economy a major push. The big ques-
output, and investment have reached real estate and exports, grew margin- tion is “to be or not to be that is the
record lows. ally last year, yet other areas such as question”. India has the potential and
So far China has held back from advanced technology and services growth rate picking up despite some
deploying the stimulus measures. expanded. economic misadventures shows in-
Analysts say stimulus measures would The US president, Donald Trump, herent strength of India and a promise
not only undo government efforts to has that there had been progress that it can surpass Chinese economy in
lower risk in the financial system, but toward a trade deal with China, but near future.
are no longer effective in spurring denied reports that he was consider-
growth. The first half of 2019 is likely to ing lifting tariffs. Little doubt that the LETTERS@TEHELKA.COM

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