Skip to main content

Macroeconomic outlook report: China

Fourth quarter of 2018

During the fourth quarter of 2018, China's GDP slowed its year-over-year growth rate by 0.10 p.p. when compared to the previous quarter, to 6.40%, hampered by the performance of the external sector. Domestic demand slowed in 2018 by 0.37 p.p. with respect to 2017, to a year-over-year rate to 6.61%. As for inflation, CPI growth decelerated by 0.10 p.p. when compared to 3Q18, to 2.20%. In the labor market, the unemployment rate fell by 0.02 p.p. to 3.80%. Finally, the renminbi depreciated against the US dollar by 0.08 RMB/USD, to an average exchange rate of 6.94 RMB/USD in the last quarter of the year.

Macroeconomic overview

  • During the last quarter of the year, the Chinese economy slowed its year-over-year GDP growth rate by 0.10 p.p. to 6.40%. Exports hampered GDP growth, as they grew below imports.
  • Domestic demand in 2018 slowed by 0.37 p.p. with respect to 2017, to a rate 6.61%.
  • In the labour market, the unemployment rate fell by 0.02 p.p. from the previous quarter, to 3.80%.
  • The renminbi depreciated against the US dollar by 0.08 renminbis per dollar in the fourth quarter of 2018 with respect to the previous quarter, recording an exchange rate of 6.94 RMB/$. This depreciation was mainly attributed to the trade tensions with the USA as well as to the increase in interest rates by the Fed.
  • Inflation stood at 2.20% in the last quarter of 2018, after a slowdown of 0.10 p.p. from the previous quarter.

For more information, click here to access the executive document in pdf.

© GMS Management Solutions, S.L., 2019. All rights reserved. The information contained on this publication is of a general nature and does not constitute a professional opinion or an advisory service. The data used in this publication come from public sources. GMS Management Solutions, SL assumes no liability for the veracity or accuracy of such data.