that China is going through challenging times, as Beijing aims for a soft landing and a transition of the economy, the Baltic and International Maritime Council (BIMCO) writes. “China’s industrial production growth level is the lowest since February 2009 when activity was under immense pressure in the early days of the global economic and financial crisis,” according to BIMCO. Chief Shipping Analyst at BIMCO, Peter Sand, said:
“Today’s production data from China shows that the world’s second-largest economy is still struggling to keep up with past performance. The forecast level of 7.5% GDP growth in China can be a challenge to reach with, by Chinese standards, such a sluggish level of industrial production. “Industrial production accounts for half of the Chinese GDP and is the part of the economy which is vital for shipping. A slowdown in manufacturing is a sign of lower demand, which could affect demand for shipping of containerized goods. “A lower activity level for utilities and mining companies suggest that less energy is required and construction activity may be slowing down too. In itself this is not positive for dry bulk shipping demand.”
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