The
International Monetary Fund (IMF) carry out an assessment of the
Chinese economy back on last Friday, at the end of the decline in the
exchange rate of the yuan and the global stock market experienced
shrinkage due to bad news from the bamboo curtain country.
In
its annual assessment of the Chinese economy over, the IMF estimates
the economy of China will grow this year and 6.8% 6.3% in 2016,
unchanged from previous estimates. Last year China recorded growth of
7.4%, the lowest since 1990.
Tuesday
last week, Tuesday last week, a result of China's money market surprise the world by devaluing the yuan exchange rate 1.9%, the largest drop in a day within a
decade. The Government of China said the yuan exchange rate is too high
and the devaluation was done to support market makers, not fight it.
The IMF supports the decision of China by contributing more to investors
in determining the exchange rate of foreign currencies.
But
the financial markets come into down along with the yuan. Investors are
worrying about the devaluation of the Chinese economy showed weaker
than expected and the Government feel hopeless in starting growth. A
lower exchange rate helps Chinese exporters because their products price
so cheaper around the world.
In its report the IMF seemed convinced by the economic prospects of China.
The IMF assesses the economic slowing that country as part of a plan
that made so that China no longer depends only on the export sector and
investment in factories and real estate, leading to a more stable
economic growth in consumer spending. The IMF estimates growth in
investment slowed to 5.8% this year from 7.6% in 2014 and for the growth
of consumer spending stalled at 7.1% this year rising from 6.9% in 2014
before.https://www.mql5.com/en/signals/120434
