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China's Economic Slowdown

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             Although China has been experiencing tremendous economic growth which stood at double digits, in the recent past the country has been on a deceleration path, with the latest growth rate released by the government in 2016, moderated to 6.8 percent for the fourth quarter and 6.9 percent for 2015. The released 2015 growth rate of 6.9 percent was a decline from 2014 statistics which was 7.3 percent[ CITATION Mag16 l 1033 ]. The data shows that Chinese economy is slowing at a faster rate as compared to what the government is saying. According to the official data released this year showed that the manufacturing sector declined for five month straight from August to December of 2015. Car sales has declined heavily to grow by 4.7 percent year over year in 2015 compared to that of 2014 and 2013 which stood at 9.9 percent and 16 percent respectively. Chinese economy driver, fixed asset investment also had a declined growth to stand at 10.2 percent in 2015 which was the weakest expansion compared to the last 15 years. There was a 5.2 percent decline in the annual producer price inflation in 2015 and an increase of Consumer price index by 1.6 percent which was much lower that the authority projection of 3percent. There are various reasons which have contributed to China economic slow-down and China-watcher and economist are worried if the reasons are not properly handled China economic growth will not remain sustainable and the country GDP will continue on a declining trend. .
             The first factor that is impeding China economic performance is population. China economic forum which commenced in 1978 involved the use of low-cost to boost its export and growth. However, the country experienced tremendous growth very fast, especially in the manufacturing sector. This saw mass exodus of people from less productive sectors like agriculture to more lucrative sectors like manufacturing and services which were mainly situated in the urban centers.


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