Analysis by BIMCO
According to BIMCO, the economic news from China this morning was somewhat comforting, but highlights the fact that economic activity in the world’s largest economy is certainly slowing down.
Behind the headline, GDP, other economic indicators such as industrial production, electricity consumption, credit growth and real estate investments suggest that things are still settling down at a slower pace going forward than we have seen in recent years.
All sectors of the global shipping industry are feeling the impact, as the Chinese economy changes in growth-pace, size and composition. As the economy evolves from one focused on infrastructure and real estate investments as well as heavily depending on its export of manufactured goods, the demand for all sorts of seaborne shipping services changes.
The Press Release from National Bureau of Statistics of China revealed the following:
The economic development in China is affected by the “complicated conditions at home and abroad“. However, “the general economic performance was moving by steady steps in the new normal with progress made and quality improved“, the press release said.
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Chief Shipping Analyst at BIMCO, Peter Sand, said:
“As the signals from a wider range of indicators tell us to be cautious, today’s news is only somewhat comforting. A new normal’ is about to arrive in China too, with a change to shipping demand as we know it likely to follow in its wake.
“The sheer size of the Chinese economy, being the world’s second largest, makes 7.3% growth significant.
“The Chinese economy is being transformed by ongoing reforms that all aim at building a stronger domestic demand that will stabilize growth and enhance social cohesion.
New data on key indicators sheds light on present, near-term and future shipping markets. This news piece follows up on BIMCO market reports and comments to commercial developments for the three main shipping segments.
Source: BIMCO