China’s economic growth slowed down in the third quarter. The manufacturing sector of China’s economy continues to erode economic growth. But Trump’s tariff war also has Chinese officials worried about economic growth in 2020. China’s Gross Domestic Product growth at the end of the third quarter was 6.0 percent. Economic growth at the end of 2018 was 6.2 percent. Gross Domestic Product growth in China hasn’t been this slow in decades, according to MarketWatch.
The Chinese want to buy more soybeans, pork, and wheat from American farmers. Chinese importers placed orders for tons of soybeans, wheat, and pork in September. China lifted the tariffs on those American farm products due to a swine flu outbreak and Brazil’s inability to ship enough soybeans to meet the Chinese demand.
China’s central bank plans to inject more money into the economy before the end of the year. But if chief negotiators Liu He can’t carve out a trade deal with Trump before the end of the year, China’s central bank may take other steps to stop the economic bleeding.
The U.S. economy also took a hit at the end of September. Government economists claim Gross Domestic Product growth was 2.0 percent. According to Wall Street economists, if Trump doesn’t sign a trade agreement by the end of the year U.S. economic growth will be zero.
International Monetary Fund Chief Kristalina Georgieva told the press economic leaders around the world fear the worst is yet to come unless Trump gives in and drops the December tariffs. Putting additional tariffs on all Chinese products would throw the world into a recession that could rival the 2008 meltdown, according to MarketWatch.
Mr. Trump’s voter base doesn’t realize Trump’s tariff cost them more than $1,000 each in 2019. And if the trade war continues, Americans will pay an additional $2,000 in tariffs in 2020. Consumer confidence is on the ropes, according to MarketWatch. If U.S. consumer spending slows down during the holiday season, a recession will be the economic flavor of the day in 2020 in the U.S., according to Wall Street economists.
Kristalina Georgieva told the press international economic growth at the end of 2019 will be 3.0 percent. That’s down from the 3.2 percent figure the IMF projected. If Trump’s trade and sanction wars continue, the world’s economy will face a challenge it never faced before, according to the IMF chief.
Dil Bole Oberoi
