Chinas economy picks up

The world`s second largest economy, second to the United States of America has expanded 7,5% from a year ago, up from 7.4% growth in the previous quarter. This is in direct relation to the governments stimulus that is not having an impact on the positive growth.

China has been actively looking at ways to stimulate the economy to help boost growth. China has experience many years of expansion, and growth had slowed in very recent times which can relate to a global decline in demand for its manufactured products.

The economic slowdown led to China trying to boost domestic demand to help increase and sustain the expansion, increasing home grown demand can also help balance the growth model.

China`s national bank said it would reduce the reserve requirement ratio (RRR) – the amount of reserve money needed for a security reserve. This spare cash would then be made available for small businesses and companies. The bank also said it would encourage other banks to help make more money available to exporters.
The Chinese government has also recently announced it would cut taxes on small business to help reduce red tape that can prevent new businesses forming. The government are also speeding up the construction of railway lines across the country. Further to this they are also announcing large domestic infrastructure projects such as new railways, roads and ariports along the Yangtze River.

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