China’s Retail Sales to Have Increased by 8% in 2019: Commerce Ministry
Arslan Butt • 1 min read
The Chinese Commerce Ministry has forecast a moderate growth in retail sales for 2019, estimating retail sales to have increased by 8%. The estimated rate of increase is lower than what was seen in 2018, when retail sales had grown by 9% during 2018.
Overall contribution of retail sales to the economy is now pegged at 41.1 trillion yuan, as per a recent report on Xinhua. The prolonged trade war with the US has seen domestic demand weaken in the world’s most populous country over 2018 and 2019, driving added weakness in economic growth which has suffered on account of decline in exports.
The announcement of the phase one trade deal between the US and China has lifted the sentiment in global financial markets and could serve to allay some of the escalating concerns surrounding the trade war. In 2020, the Chinese economy could experience some recovery if trade negotiations progress well and both nations are able to resolve their difference.
On Monday, the yuan continues to trade under the key 7 level as markets remain hopeful that the phase one agreement will be signed soon. At the time of writing, USD/CNH is trading at around 6.979.