China GDP Growth Slows to 6.7% in Q1


The Chinese economy advanced an annual 6.7 percent in the first quarter of 2016, compared to a 6.8 percent expansion in the previous period and in line with market expectations. While it is the weakest growth since the first quarter of 2009, fixed-asset investment, industrial output, retail sales and new yuan loans all increased more than estimated in March, suggesting the economy is accelerating.

Considering the first quarter of the year, the services sector expanded 7.6 percent and industry advanced at a slower 5.8 percent. 

Fixed-asset investment rose 10.7 percent in January to March 2016, above market estimates of a 10.3 percent increase and higher than 10.2 percent in the first two months of the year. Property investment increased by 6.2 percent in the first quarter of 2016, accelerating from 3.0 percent in the first two months of the year.

Industrial production expanded 6.8 percent year-on-year in March, up from 5.4 percent in the first two months and beating market consensus of a 5.9 percent rise. It is the highest growth figure since June 2015. By categories, manufacturing output grew the most by 7.2 percent, followed by electricity, gas and water production and water supply (+4.8 percent) and mining (+3.1 percent).

Retail sales rose 10.5 percent in March, quickening from 10.2 percent in the previous two months and higher than market expectations of a 10.4 percent growth. 

Figures released earlier showed exports increased by 11.5 percent year-on-year to USD160.86 billion in March 2016, reversing from a 25.4 percent decline in the preceding month. It is the first gain since June 2015, partly reflecting a seasonal upturn after the Lunar New Year holiday in February. Imports dropped by a lower-than-expected 7.6 percent to USD130.9 billion. 

China GDP Growth Slows to 6.7% in Q1


Statistics China l Rida Husna | rida@tradingeconomics.com
4/15/2016 9:19:08 AM