Lukman Otunuga
ForexTime (FXTM)
Sentiment towards the Chinese economy was dealt a slight blow, following reports of the nation growing at its slowest pace since 2016 during the second quarter of 2018.
Chinese GDP growth expanded 6.7% year on year, slightly lower than the 6.8% growth witnessed in the previous quarter amid escalating trade tensions. While the latest GDP figures may raise concerns over global growth, it must be kept in mind that China was able to secure an annual growth rate of 6.8% year on year in the first half of 2018. When factoring how the current pace of growth still remains firmly above the governments annual growth target of 6.5%, the overall outlook for the Chinese economy remains encouraging. As the third quarter gets under way, markets will be closely watching how the global trade developments play out and what impacts it may have on the Chinese, US and global economy.
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