China is not performing so well like in the past 15 years and according to economic scientists, the country's losses of growth will result in a much slower economy for the Asian country. Economic data shows that China has indicated an 18 month low of 7.4% and this has arisen concerns that its economy may be much slower than usual.
"We maintain our view that GDP growth is on a downtrend and continue to expect it to slow to 7.1 percent in the second quarter," Zhang Zhiwei, a Nomura economist, has stated in a special report.
Authorities have already showed an increasing concern over the country's economy and plan to reduce its official target which would need parliamentary approval.
"To stop growth from sliding out of a "reasonable range", Beijing needs to ease policy a little more in the coming months, if not weeks," HSBC economists have expressed their opinion and have called for a more stable monetar policy.
"Policymakers have ample ammunition on both fronts though, and we think they are likely to deploy these in a more active manner in the coming months if not weeks to prevent a further deterioration in the real economy.''
China leaders are trying to lower people's expectations and develop and economy that is more focused on internal consumption than on export of goods and services.
"We must adapt ourselves to a new normal of economic growth," President Xi Jinping has announced over the weekend.
The authorities are currently abstaining from developing a major growth-stimulating stimulus. However, they are trying to put an end to unemployment surges because these may negatively affected the current economy.
China's economy is a major factor in the current world's economy and any mishaps and influences to this major economy will have a tremendous impact over other country's economies.
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