Chinese Economy Slows to Worst in 30 Years After Deleveraging Efforts, Experts Warn
So far this year, economists are carefully monitoring Chinas economy; as Chinese companies are reporting big losses for the 2018 financial year. Contractions were experienced in all industries: from pig farms not being able to import the necessary pig feed to glass manufacturers unable to source the materials for production.
Experts are quick to point out this may have been a result of deleveraging (rapid selling of assets) in Beijing. The Chinese economy grew at the slowest rate in the last 30 years in 2018, as increased deleveraging initiatives generated a funding tight spot among smaller companies which has undoubtedly slowed the private sector.
Economic growth is anticipated to return later this year.