China Reveals Lowest Expansion Rate in 24 Years
After the country revealed it’s lowest expansion rate in 24 years, a slower growth is somewhat allow a reforming Chinese economy to become more stable which is good news o the head of the country’s central bank. Also the governor of the People’s Bank of China Zhou Xiaochuan stated that the National People’s Congress and the National legislature will be discussing a lower growth during its annual session last March.
China also announced that the growth slowed to 7.4 percent in 2014 the lowest since 1990 as property prices since have cooled and the figures were slightly higher than expected. Whether China’s growth slowdown, but economy becomes sustainable then it’s good news. Previous export driven expansion drive has been recently unsustainable and just right for the government to set focus on structural reforms that will make the economy more sustainable this including transition to renewable energy sources.
But it they pursues a too high a growth rate the government will probably postpone necessary structural reforms since people care more about is structural reform and it’s okay to sacrifice a little growth as long as they have structural reform.