China Q1 GDP growth hits a 7-year low of 6.7%

16 Apr 2016


China's economy grew 6.7 per cent year-on-year in the first quarter of the current year (January-March 2016), its slowest pace since the first quarter of 2009, amidst signs that slowdown in the world's second largest economy is bottoming out.

China's economy had expanded at a slightly faster pace of 6.8 per cent in the last quarter of the previous year, while Asia's largest economy had grown at the slowest pace of 6.2 per cent in January-March 2009.

For the whole of 2015, China's economy had grown at 6.9 per cent, its weakest rate in a quarter of a century.

While growth this year is expected to be even slower, despite the government ramping up spending and trimming interest rates further, data published on Friday suggested that China's economy may be steadying as the government measures begin to take effect.

Retail sales growth quickened to 10.5 per cent in January-March 2016, showing a pick-up in consumption.

China's industrial production growth also jumped to 6.8 per cent in January-March 2016, against a growth of 5.4 per cent in the corresponding quarter last year.

Investments in fixed assets grew at a faster rate of 10.7 per cent year-on-year in the January-March quarter, helped by easier credit.

Chinese banks extended 1,370 billion yuan ($211.23 billion) in net loans in March.

China's exports also staged an unexpected recovery with March exports showing a bouyancy, figures released earlier this week showed.

Meanwhile, a rising dollar has ensured an easing of capital outflows from China.

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