China registered growth of 7.3 per cent in 2014.
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Xinhua quotes National Bureau of Statistics chief Wang Baoan saying that China now “faces a daunting task in deepening reforms on all fronts”.
China’s full-year growth declined to 6.9 per cent, the lowest level since sanctions imposed on Beijing following its crackdown on the Tiananmen Square pro-democracy movement caused growth to plummet to 3.8 per cent in 1990.
Fixed-asset investment growth, a crucial driver of the economy, grew 10.0 percent in 2015 from the previous year, also missing market expectations.
Retail sales for December climbed 11.1 percent from a year earlier, a little lower than expected.
“Meanwhile, the December data, although mixed, don’t suggest that China is now entering a deeper economic crisis”, he said.
Rain Newton-Smith, CBI director of economics, said: “These figures paint a picture of a Chinese economy which is slowing and rebalancing, but still making a huge contribution to the global economy”.
Gross domestic product rose 6.8% vs. a year earlier in the fourth quarter, the weakest since Q1 2009 and below Q3’s 6.9% gain. Leading many to look at China’s primary economic indicator with a tad of skepticism.
After being a major locomotive of global growth in recent years, China is locked in the midst of a protracted slowdown. “From a policy perspective this implies that PBOC will cut RRR and interest rates again in the coming months and maintain a broadly accommodative monetary policy”.
Also the annual growth of China’s property investment continued to cool to 1% in 2015, a sharp decrease from the 10.5% growth in 2014.
Those results fell short of economists’ expectations, according to a survey by Bloomberg News, which predicted retail sales rising 11.3 per cent year-on-year in the month and industrial production expanding 6.0 per cent. Nonetheless Chinese stocks were flat in late morning, as the economic growth figures came in line with expectations. The economy of china is following its cooling trend and has slowed from a sizzling growth reflecting double-digits to mid-single digits.
Chinese consumption has grown to 66.4 percent of GDP growth in 2015, compared to 46.3 percent in 2010. “A very high saving rate in the country allows for higher investment in raising the capital stock and sustains growth in labor productivity”.
The government has been broadcasting this for some time now as it attempts to transition from a state-led investment and manufacturing economy to one more dependent on services and consumption.
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The highly anticipated economic growth data for China are out, and while markets are celebrating the prospect of more stimulus, analysts – including perma-bear Marc Faber – are again questioning the trustworthiness of the numbers.
