The rapid devaluation of the Yuan combined with expansive loan growth and stimulus were unable to accelerate growth throughout 2016 as evidenced by the latest gross domestic product print. According to National Bureau of Statistics, growth for the year was recorded at 6.70% despite the economy growing at a 6.80% annualized pace during the fourth quarter as government spending and lending helped offset the slowdown in trade.
However, other metrics released overnight were not necessarily as optimistic about the outlook. Industrial production grew by a more tepid 6.00% year over year compared to the 6.20% reported a month earlier while fixed asset investment expansion also decelerated during the same period to 8.10%.
Since the announcement, the Yuan is trading mostly flat against the US dollar as markets quiet ahead of the Trump inauguration address.