China's Shaky Economy

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The economic growth rate of China has been according to what has been expected and the expectation that more imminent monetary factors to ease the pace of the economy has set a positive note about the Chinese economy. However, there have been indications about a shaky growth of the economy. These are the indications that highlights, the slowdown of the growth:

• The growth was weakest in the last quarter with a growth rate of 6.8%.
• There was a huge outflow of capital and a slide in the currency rate. While the spot yuan has been less affected, the offshore yuan has weakened.
• There was a summer stock crash and made the country risky for global investors this year. This has led to a global concern about Beijing's grip on economic policy.
• China's statistical bureau has estimated a rise of 5.9% in industrial growth for December, which was less than the rise that was expected. During last year, there was a fall in the output of electric power and steel for the first time in decades. Coal production saw a decline the second sequential year.
• Weakening the power of the consumer to become the new engine of growth, the December retail sales saw a decline a more than 10%.

The economy may therefore have a shaky landing experience this year. The factors that could stimulate the economy are the effective intervention of the Peoples Bank of China and  the stability of the yuan(also known as renminbi). This will contain the volatility and the  increasing outflow of capital which are essential and pivotal to maintain growth.