Beijing :The speed of the economic growth rate of China, which had taken a lead in the World economy, seems to have slowed down. According to the Chinese agencies, till 2016, China’s economy somehow managed a growth rate of 6.7%. In the last 26 years, this growth rate could be considered the lowest in China’s economic history. The Chinese government however has claimed that economy has successfully progressed as per expectations.
In 2015, for the first time the Chinese economic order had declined below 7%. This slide down in the Chinese economic order would remain constant in the coming years was an indication given by many economic experts and observers at International levels. Factors responsible for this decline were ever increasing baggage of indebtedness, slow growth rate, reduction in exports, change in the yuan currency value and a reduction in foreign investments.
The ruling Communist Party of China had maintained that new changes were being made in the ‘model’ of economic growth and fresh progressive inroads were being made in the ‘model’ with necessary speed. The Chinese leaders had cautioned that due to changes being made in the ‘model’ there could be jerks to the economic progress. Thus the year end economic decline is the result of this change, claim the Chinese authorities.
However, the economic experts abroad are giving indications that the Chinese economic order has ‘bloated’ due to excessive financial aid, and increasing indebtedness – if it goes out of control will bring about a collapse of the Chinese economy.