China posts 7.7% GDP growth in 2013

Chinese economic growth has stagnated at 7.7 per cent in 2013 over the previous year, the slowest rate in 14 years, according to the latest data released by the National Bureau of Statistics.

The nation's gross domestic product (GDP) reached $9.3 trillion last year.

Growth in the world's second-largest economy has been slowing down from 10.4 per cent in 2010 to 9.3 per cent in 2011 and a revised 7.7 per cent in 2012. However, the 2013 growth figure is an improvement over the government's set target of 7.5 per cent for the year.

The country is facing several challenges as the government is poised to shift focus to a domestic demand driven growth model through radical political and economic reforms.

Long-sighted reforms under the leadership of president Xi Jinping include fiscal reforms, greater spending on social welfare, strengthening the country's market economy and better enforcement of environmental protection and food safety.

The country's Q4 growth is also 7.7 per cent which indicates a slowdown from 7.8 per cent expansion in the previous quarter, although the figure is above analysts' expectation of 7.6 per cent. 

China's trade surplus was $260 billion in 2013. Imports and Exports grew at an annual rate of 7.6 per cent to $4.1 trillion during the year, according to the government data.

Retail sales of consumer goods also showed encouraging results. For the whole year, it increased 13.1 per cent to $3.87 trillion, while December sales grew 13.6 per cent over last year.

The consumer confidence was boosted by improving economic scenario and the momentum is expected to continue in the first quarter of 2014, according to the commerce ministry. Online shopping and strong sales of telecommunication equipment have added to the retail sales growth.

Industrial output rose 9.7 per cent in 2013 year-on-year. The output for December also grew 9.7 per cent, albeit a slowdown from the 10 per cent reported in November.

Fixed-asset investment excluding rural households rose 19.6 per cent during the year compared to last year.

Inflation data for December released a fortnight ago indicated a 7-month low of 2.5 per cent, down from 3 per cent in November and 3.2 per cent in October.

The country's economy is expected to grow 7.4 per cent this year, the slowest pace in almost a quarter century, according to an economist survey last month.

The slowdown is expected as the government steps up reforms to rein in credit surge and shift the country's growth model.

The total debt of the Chinese economy has grown rapidly since the onset on the global financial crisis and has reached over 200 per cent by the end of 2013.