China 2018 GDP Growth Weakest in 28 Years


The Chinese economy advanced 6.4 percent year-on-year in the December quarter of 2018, after a 6.5 percent growth in the previous quarter and matching market expectations. It was the lowest growth rate since the global financial crisis, amid intense trade dispute with the US, weakening domestic demand and alarming off-balance-sheet borrowings by local governments. Considering full 2018, the economy expanded 6.6 percent, the weakest pace since 1990.

The Chinese government set a 2018 growth target of around 6.5 percent. For 2017, Chinese statistic bureau revised down the country's GDP growth to 6.8 percent from 6.9 percent.

Considering the fourth quarter of 2018, the primary sector expanded 3.5 percent; the secondary 5.8 percent and the tertiary 7.4 percent.

On a quarter-on-quarter basis, the GDP advanced 1.5 percent, compared to a 1.6 percent expansion in the previous period and in line with market estimates. It was the weakest pace of quarterly expansion  in three quarters.

Considering full 2018, the primary sector went up 3.5 percent, down from 3.9 percent in 2017, mainly due to production of grain (-0.6 percent from 2017); and pork, beef, mutton and poultry (-0.3 percent).

Industrial output rose 6.2 percent, 0.4 percentage point lower than in 2017. Manufacturing advanced 6.5 percent, electricity, thermal power, gas and water supply grew by 9.9 percent and the mining sector went up 2.3 percent. The value added of the high-tech manufacturing, strategic emerging industries and equipment manufacturing increased by 11.7 percent, 8.9 percent and 8.1 percent, respectively over the previous year. 

The services sector increased 7.7 percent, slower than a 8.2 percent growth in 2017.

On the expenditure side, final consumption accounted for 76.2 percent of the GDP, with retail sales rising 9 percent, lower than 10.2 percent in 2017.

Capital formation accounted for 32.4 percent of the GDP, with property investment growing by 9.5 percent, 2.5 percentage points faster than the pace in 2017. Investment in residential buildings increased 13.4 percent, 0.4 percentage higher than in 2017 and accounting for 70.8 percent of real estate development investment. At the same time, fixed asset investment went up 5.9 percent, 1.3 percentage lower than in 2017. Private investment went up 8.7 percent, 2.7 percentage points faster than in 2017. Investment by the state holding enterprises edged up 1.9 percent.

Total trade grew 9.7 percent from 2017. Exports increased by 7.1 percent, while imports went up at a faster 12.9 percent.


China 2018 GDP Growth Weakest in 28 Years


Statistics China l Rida Husna | rida@tradingeconomics.com
1/21/2019 10:51:24 AM