It is one of the basic indicators, which evaluates the state of the country’s economy. This indicator represents the alteration of the overall goods value manufactured by mining and secondary industry manufacturers as well as servicessector after allowing for inflation.
Effect of market
Considering the importance of China’s economy for the global economy, the index significantly influences the markets, including foreign exchange market. The industrial production growth in China prompts a posi-tive response from stock markets, with increasing demand for high-yield currencies while pushing down such safe haven status currencies as Dollar, Yen and Swiss franc.
Furthermore excessive growth rates can be considered as a sign of China’s economy overheating, thus causing adverse reaction, because in this case there are higher chancesthat the Government of China will take actions of “cooling down” the national economy.