China's Economy Grew At Slowest Pace In 28 Years In 2018
Umer Jamshaid Published January 21, 2019 | 09:45 AM
Beijing, (APP - UrduPoint / Pakistan Point News - 21st Jan, 2019 ) :China's economy grew at its slowest pace in almost three decades in 2018, losing more steam in the last quarter as it battles to quell massive debt and a US trade war, official data showed Monday.
The 6.6 percent growth comes in above the official target of around 6.5 percent and matches a forecast by analysts polled by AFP, but is down from the 6.8 percent chalked up in 2017, according to the National Bureau of Statistics (NBS).
And in a sign of the battle Beijing faces in getting things back on track, growth in the last three months of the year clocked in at 6.4 percent, matching a low seen during the global financial crisis 10 years ago, with economists widely expecting the slowdown to deepen.
"The 'three critical battles' of preventing and defusing financial risks, conducting targeted poverty alleviation, and controlling pollution got off to a good start," said NBS commissioner Ning Jizhe in prepared remarks.
The slowing growth prompted Premier Li Keqiang last week to vow the government would not let the economy "fall off a cliff".
Relations with top trading partner the US deteriorated sharply last year after President Donald Trump hit roughly half of Chinese imports with new tariffs in an attempt to force trade concessions.
The trade war is on hold for now after President Xi Jinping and Trump agreed to a three-month ceasefire while the two sides try to find a resolution, with top negotiators set to meet in Washington at the end of the month.
While analysts say the standoff has dented confidence -- leaving the stock markets battered and the Yuan weakened -- they attribute most of the downturn to the government policies to tackle growing debt, financial risk and pollution.
China hit the brakes on major projects such as subway lines and motorways and held off on mountain-moving endeavours to keep a lid on debt last year, with infrastructure investment rising by just 3.8 percent, down from 19 percent the year before.
China's exports to US and the world also fell in December, reinforcing the need for its legions of domestic consumers to fuel the economy.
- 'Massive market' - Li last week touted China's "massive market" and vowed to spur on consumption, but the data shows difficulty ahead.
Overall credit growth decelerated every month last year.
"The slowdown in credit growth is causing economic momentum to falter," said Mark Williams, chief Asia economist at Capital Economics, in a note last week.
Tighter credit has hit consumer spending with car sales falling last year for the first time in more than 20 years.
Retail sales growth slowed to 9.0 percent, down from a 10.2 percent increase the previous year. In December, sales grew 8.2 percent.
Output at factories and workshops ticked up 6.2 percent for the year, down from 6.6 percent in 2017.
- Reliable data? - The official figures could be painting an overly rosy picture, analysts say.
Economists in China and abroad have long suspected data is massaged upward, often noting that full-year gross domestic product hits Beijing's pre-set targets with suspicious regularity.
The governor of northeastern Liaoning admitted in 2017 that the industrial province had falsified data for years.
Even Li said in 2007, when he was Liaoning's top political official, that results were often "man-made" and he used his own calculations to guide provincial policymaking, according to a confidential memo released by WikiLeaks.
"The NBS is part of the government... that is why it is legitimate for the outside world to worry about potential adjustment of data on the economy," said Louis Kuijs of Oxford Economics.
The US-based Conference board, a widely respected global business think tank, said its methodology indicates growth of 4.1 percent for 2018.
On Friday, China revised its 2017 economic growth down to 6.8 percent from 6.9 percent -- a move some analysts say may have been aimed at beefing up this year's growth rate.
"Sceptics will be forgiven for questioning whether NBS is trying to smooth GDP growth by shifting some of the recent weakness into the 2017 figures," said Julian Evans-Pritchard of Capital Economics in a note.
Related Topics
Recent Stories
PM visits martyred Customs official's residence in Abbottabad
Punjab CM Maryam faces legal case for wearing police uniform
PTDC plans to organize two-day tourism expo
COP29 host says deal on climate aid essential but offers few details
SC orders end of encroachments in Karachi
Nazish Jahangir denies viral screenshots, calls them fake
Govt likely to hike electricity price once again
Bismah Maroof announces immediate retirement from international cricket
Malala expresses unwavering support for Gaza people
Selection committee dissolved over Pakistan women cricket team's poor performanc ..
Punjab CM Maryam Nawaz in police uniform at Chung police center
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 25 April 2024
More Stories From World
-
COP29 host says deal on climate aid essential but offers few details
9 minutes ago -
Ukraine jails couple for helping Russia strike hospital
22 minutes ago -
Togo opposition asks W.Africa court to overturn reforms
32 minutes ago -
Paris landmark Moulin Rouge's windmill sails collapse
51 minutes ago -
Ahead of feared Rafah invasion, Palestinians mourn bombardment dead
52 minutes ago -
155 killed in Tanzania as heavy rains cause floods, landslides: PM
52 minutes ago
-
Car giants vie for EV crown at Beijing's Auto China show
52 minutes ago -
Chinese defense minister to attend SCO meeting in Kazakhstan
1 hour ago -
China-Bangladesh to hold joint military exercise in May
1 hour ago -
Residents protest as Venice launches five-euro entry fee
1 hour ago -
Portugal marks 50 years of democracy with far right on rise
2 hours ago -
Pakistan envoy visits TomatoWorld in Netherlands
2 hours ago