Indicators Show Signs of Improvement even with a Sluggish World Economy
Economic indicators are showing signs of improvement during the first quarter even with a sluggish world economy and volatile market that is depriving changes on a solid basis. According to Premier Li Keqiang, the overall situation is better than expected and he is confident that the government will be able to maintain the medium to high speed of economic growth even when faced with difficulties.
During the first quarter of the year, economic indicators showed improvement although the basis of the improvement is not as solid as they think due to the impact of the slow world economic paired with market volatility. Officials are also saying that the economy is showing signs of improvement and capital outflows are easing. Within the weak the government is scheduled to release key economic data which will included the first quarter economic growth data.
The economic growth slowed to 6.8 percent during the fourth quarter the weakest since the financial crisis that started in 2007. Researchers at the central bank said that the country must gradually adjust the bank reserve requirement ratio which is based on the balance of payments and economic changes. The People’s Bank of China already slashed interest rates six times since November 2014 which reduced the reserve requirement ratio in support of a slowing economy.