More Data Shows Chinese Slowdown
The Chinese economy grew by 7% y-o-y in the first quarter of 2015, according to National Bureau of Statistics in China. This is the weakest overall growth in six years. Growth during the quarter was strongest in the industrial sector (6.4%) and the service sector (7.9%), whereas the primary sector (3.2%) contributed to a lesser extent. The data confirms the economic outlook for China, which remains a slowing economy that is going through a transition from being heavily reliant on exports, manufacturing and construction to being one that runs on domestic consumer demand. The development is ongoing at high speed and data on industrial production in March and total retail sales of consumer goods in the first quarter confirmed this change is very much on.
Good News from China on GDP, Industrial Production
The economic news from China this morning were somewhat comforting but highlights that the economy activity in the world’s largest economy is certainly slowing down, reports BIMCO. Behind the headline GDP, other economic indicators such as industrial production, electricity consumption, credit growth and real estate investments suggest that things are still settling down at a slower pace going forward, from what have seen in recent years. All parts of the global shipping industry feels the impact as the Chinese economy changes in growth pace, size and composition.
BIMCO: Key Indicators for Shipping Demand
New data on three of the key indicators followed by BIMCO’s shipping market analyst sheds light on near-term and future market developments. The news follow up on BIMCO market reports and comments to commercial developments for the three main shipping segments. 1. China’s industrial production (IP) grew by 9% in July over the same period last year, according to the National Bureau of Statistics in China. This is a minor decrease from 9.2% in June, which was a three-month-high.
