The hot topic lately
in the news is trade. During President Donald Trump’s state visit to Britain
and his meeting with Prime Minister Theresa May, he encouraged the UK to get Brexit
over with so that the U.S and the UK could come to a trade deal. According to
Bloomberg, Trump said that a deal would triple trade between the two countries.
In other news,
Chinese President Xi Jinping said that China’s economy is stable, healthy and
well placed to meet all risks and challenges, according to a transcript
published by the Xinhua news agency just before Xi’s state visit to Russia.
Although he did not specifically mention the trade war with the U.S, the
challenges Xi mentioned may point to how the talks escalated last month, without
either one of the two large economies backing down.
Some economists do
not share his enthusiasm and have lowered their forecasts concerning the
Chinese economy for 2020. Bank of America Merrill Lynch cut its GDP growth
forecast to six percent from 6.2 percent. The World Bank also dropped its
forecast for economic growth from 6.2 percent to 6.1 percent.
China’s economy has
remained reasonably stable so far this year and it has also enjoyed stable
growth, stable prices and increases in employment.
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