These deficits have, in turn, held down economic growth. With a strong economic recovery in the early 1990s, China had peak growth in 1993, at about 13.5 per cent. But, accelerating inflation led the Government to implement tight monetary policies and administrative controls on investment. Strong domestic and foreign investment, large financial inflows and strong export growth were the main contributors to the strength of the Chinese economy over the past several years. International economic environment 17.
Domestic factors are primary determinants of national economic growth.
With growing trade and financial liberalization in an increasing number of countries, dynamism and buoyancy in international trade and financial flows are also important to economic performance. World trade 18. World trade has become much more dynamic in the past decade. Growth has slowed further in 1996 to approximately 5.5 per cent. The rebound in 1994 was driven by strong import demand in the developed economies, generated by their economic recovery and exchange-rate realignments.