On Wednesday, China released an economic data that is beating the expectations regarding the gross domestic product numbers. China said that its economy has expanded by 6.4% in 2019’s first quarter, It is more than that the analysts had expected. Country’s economy had expanded in 2018’s fourth quarter and 6.8% in 2018’s first quarter. Investors, all across the world have been tracking the Chinese economy when the trade war with Washington is in process. The official figures of the GDP have been followed widely and many experts are very skeptical about the authenticity of these reports.
About the latest official data, analysts feel that Beijing’s measures to support its economy have been the reason for this good performance of the country. The regional chief investment officer, Yifan Hu, said that the impact of the policy is showing effects now. Hu said that she is expecting the authorities of the country to introduce policies that are supportive as the uncertainties regarding the trade have not vanished. China and the US are currently negotiating a deal after their fight for tariff on hold. Hu said that the negotiations are going on. She added that we are seeing positive signs but we are aware of the volatility and uncertainties that could come later on. A spokesperson of the National Bureau of Statistics said that although there are many positive signals, the economy of China is still facing pressure from external environment.
The asset management of JP Morgan said that China could hold back fresh stimulus. The market strategist of Asia Pacific, Tai Hui said that the central bank of China would hold back further monetary facility to avoid the accumulation of debt again. The strategist had written in a note that they should keep in mind that the target of growth in current year is 6 to 6.5% and the recent 1Q number is touching the top of this range.