China’s economy slowed by a larger margin than full-year 6.6% real GDP growth implied in 2018, but there are already some signs of stabilization in credit and activity growth emerging. The trade dispute with the United States and the property sector are key headwinds for China’s economy in 2019, but some indicators of household consumption rebounded in December. Despite slowing producer price growth, China’s economy can probably avoid facing deflationary pressures this year, but the outlook depends heavily upon movements in crude oil prices.
