China delays growth target for the first time in 30 years - so Sweden can be affected

Before the corona eruption hit China, analysts had expectations of a growth target of about 6 percent. But the first quarter of the year, on the contrary, meant a decrease of 6.8 percent compared to the same period last year, according to TT.

It is for the first time since 1990, when it began to present its goals, that the Chinese regime has now chosen not to set a growth target for this year. Instead, Beijing should invest in stabilizing jobs and ensuring living standards.

Robert Bergqvist, chief economist at SEB, shared the news about China on Friday:

- China is the world's second largest economy, which is why it is extremely important for the world but also for Sweden that it is doing well for China's economy. We are at about 4-5 percent in exports directly to China. You may think that it is not that great, but China is an engine of the world economy and it chops the engine when hacking the whole machinery. China is very important for Sweden, especially indirectly, for Swedish growth.

Are you worried?

- No not really. What makes me a little worried is that we have China and do, therefore we do not know exactly what it looks like. But I listen a lot to companies that are in place and I would say that it is still quite good. And then it is above all the industry, he says, adding:

- What is a small question mark is the domestic economy and, above all, household consumption. They seem to hold back a bit.

According to Robert Bergqvist, many point out that China believes that the situation has been "well under control".

- I also believe that China has more tools to add to boost its economy if needed. I believe that China will actually help the world economy in the recovery we hope will happen in the second half of the year.

Tim Rühlig, researcher at the Institute of Foreign Policy and China expert, says the development was expected and that it shows that China's economy was weaker at the covid-19 outbreak than many international analysts thought. At the same time, he points out that the regime now seems to be moving towards a slower and more qualitative growth.

- In general, crises always pose a risk to power. But for the moment, the Chinese people seem relatively satisfied with how the Communist Party has withheld covid-19 with drastic methods. If this were to change, however, I think they will be quick to change course, he says.