Chinese economy still experiences downward pressure

Chinese economy still experiences downward pressure

The Chinese economy still experiences downward pressure and the country’s cabinet is going to counter it by deepening reforms as well as cutting taxes. That’s what state television informed referring to Premier Li Keqiang’s remark on Wednesday.

As a matter of fact, the Chinese economy managed to rally by up to 6.4% in the first quarter, confounding hopes for a further deceleration, with retail sales, investment, and factory output last month all soaring faster than anticipated after a raft of stimulus measures.

The country’s Premier stressed that the Chinese cabinet already knows that the domestic economy is still exposed to downward pressure.

The Chinese statesman called for greater confidence, although added that the country’s cabinet should avoid underestimating the difficulties in the national economy.

The world’s number two economy is on the verge of deepening reforms, cutting red tape and also implementing large-scale tax trims for the purpose of helping companies, as Li pointed out.

In addition to this, China's major financial institution will most probably pause with the aim of evaluating conditions before making any further cuts in lenders' reserve requirements, although its easing policy bias is still intact. That’s what policy insiders revealed to Reuters.

Market experts don’t expect a steep revival in the world's number two economy due to the fact that a great number of private businesses grapple with high funding costs. Meanwhile, external demand might weaken in the nearer future as the world economy loses steam.

On Wednesday, China's major financial institution extended 267.4 billion yuan to some commercial financial institutions via its targeted medium-term lending facility because it seeks to provide struggling smaller businesses with a steady stream of financing.


USD is heading for the best week in three
USD is heading for the best week in three

The US dollar is heading for the best week in three. The market sentiment is mixed as optimism about the global economic recovery was outshined by increasing tensions between the West and China.

Key market news and trade ideas on March 25
Key market news and trade ideas on March 25

Rising yields, potential US tax hikes, and inflation fears worry investors. As a result, the market sentiment is risk-off. Stocks are falling, while the USD and the JPY are edging higher. 

Latest news

Deposit with your local payment systems

Learn more

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera