China GDP Growth at 6-Year Low


The Chinese economy expanded 7.0 percent in the first quarter of 2015, down from a 7.3 percent increase in the previous three-month period. It is the lowest growth rate since the March quarter of 2009, due to a slowdown in manufacturing and property investment.

Year-on-year, fixed asset investment increased at a slower 13.5 percent in the first quarter of 2015, down from 13.9 percent in the first two months of the year. Property investment rose 8.5 percent in the first quarter, compared with a 10.4 percent increase in January to February. 

The industrial sector expanded 6.4 percent in the first three months of 2015. The manufacturing sector rose 7.2 percent, mining was up 3.2 percent and the production and supply of electricity, heat, gas and water increased 2.3 percent.

Separate data for the March month showed industrial production expanded 5.6 percent year-on-year, the weakest since November of 2008. Retail sales rose 10.2 percent, easing from 10.7 percent in February. Meanwhile, exports shrank 15 percent, following a 48.3 percent rise in the preceding month. Imports also declined by 12.7 percent after registering a 20.5 percent drop in February.

On quarterly basis, the GDP expanded 1.3 percent, compared to 1.5 percent in the December 2014 quarter. 

In 2014, the country's economy advanced by 7.4 percent, the slowest pace in 24 years. Premier Li Keqiang acknowledged the economy is facing increased downward pressures while markets widely expect more stimulus measures. The IMF projects China's economy to grow 6.8 percent in 2015.

China GDP Growth at 6-Year Low


National Bureau Statistics l Rida Husna l rida@tradingeconomics.com
4/15/2015 9:37:43 AM