China isn’t exporting recession

Beijing—Although 2015 was a year of global economic woes, China’s slowdown was not as bad as some would make it out to be.
The country’s economy slowed to a 25-year low and credit swelled at the local level. China has since been called to task for an erratic and jittery global market.
But there are factors that should be taken into account before making judgments about the country’s influence on the world economy.
China’s economic expansion of 6.9 percent last year would have been inspiring in any time and for any country. Some have called China and Brazil the two main risks for another global recession, but comparing the two is misguided, as the latter’s economic growth fell by 4 percent in 2015.
China’s economy grew by 4 trillion yuan or 610 billion U.S. dollars last year, just 0.1 percent or 9.1 billion dollars less than what was expected for 2015.
Some analysts questioned the figure’s accuracy, saying the country’s GDP may have been manipulated. They cited China’s manufacturing PMI, which has shown signs of contraction for months.
But they failed to take the country’s ever-expanding service sector into consideration. The service sector began to contribute significantly to China’s economic growth in 2015, accounting for the majority of growth.
Although manufacturers like Caterpillar faced a gloomy year in China, Walmart and Starbucks maintained momentum.—Xinhua

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