The Chinese economy grew 6.0% year on year in the final quarter of 2019, after slowing to its weakest pace in almost 30 years. Investment growth increased, helping overall growth to stabilise.
Other data suggests that China’s growth momentum will improve from here. The OECD leading indicator has turned, both exports and imports picked up, and money supply growth accelerated to its fastest pace since early 2018. In addition, if the status quo after the Phase I trade deal remains, downward pressure on the Chinese economy will abate later in the year.
