Chinese growth slowest in 28 yrs

Beijing, January 21 

China’s GDP grew at 6.6 per cent in 2018, its slowest rate since 1990, official figures showed on Monday, stoking fears about the impact of sluggish growth in the world’s second largest economy on the world as Beijing grappled with the effects of the trade war with the US.

Signs of further cooling in China, which has generated nearly a third of global growth in recent years, are stoking worries about risks to the world economy and are weighing on profits for the firms ranging from Apple to big carmakers.

Fourth-quarter gross domestic product (GDP) grew at the slowest pace since the global financial crisis, easing to 6.4 per cent from 6.5 per cent in the third quarter, data from the National Bureau of Statistics showed. That left full-year growth at 6.6 per cent, the slowest rate of expansion China has seen since 1990. 

Weakening activity and signs of rising unemployment underline a pressing need for more economic support measures as Beijing wrestles with the United States over trade.

Chinese policymakers have pledged more support this year to reduce the risk of a sharper slowdown, but they have ruled out a “flood” of stimulus like Beijing has unleashed in the past, which quickly juiced growth rates but left a mountain of debt.

With support measures expected to take some time to kick in, most analysts believe conditions in China are likely to get worse before they get better.  

However, some analysts believe China’s actual growth levels are already much weaker. —  Agencies

Why, and what next  

• Weak investment weighing on economy after debt clampdown
• US tariffs, slowing global demand dent exports
• Trade war further souring business, consumer sentiment
• More policy easing, stimulus measures expected in form of construction spending, special loan programmes, tax cuts
• Economy likely to slow further before steadying around mid-year