1. In the 3rd quarter, the Chinese yuan strengthened on 3.7%
2. World Bank predicts China's economy will grow by 2.0% in 2020
3. China will not be able to 100% fulfill an interim trade agreement with the United States
The Chinese yuan ends the 3rd quarter with maximum growth against the US dollar in more than 10 years. The strengthening of the Chinese currency is taking place against the background of optimistic estimates of the prospects for the recovery and development of the Chinese economy. For 3 months, the yuan increased against the dollar by 3.7%.
The World Bank predicts the weakest East Asian and Pacific GDP growth in more than 50 years. In 2020, GDP is expected to grow by only 0.9%. This is the minimum growth since 1967. The World Bank predicts a 2.0% growth in China's economy; for the rest of the economies, GDP is expected to decline by 3.5%.
According to Bloomberg in August, China significantly reduced the volume of purchases of American goods in the framework of an interim trade agreement concluded between the countries. By the end of August, China acquired only 32.8% of US goods from the planned annual volume of purchases. Experts note that the low percentage of implementation of the trade agreement was affected by the slowdown in energy prices. In August, energy purchases fell 24% from the previous month. China purchased only 14% of the annual plan.
News to pay attention to today:
14:00 GMT. US: CB Consumer Confidence Index