China’s economic growth slows again
China's economic growth slows again.
China witnessed its second consecutive quarter of weakening expansion as Beijing pushes for reforms.
Data showed that the world’s second biggest economy grew by 7.5% compared to the previous year, down from 7.7% in the January to March period.
The figures were in line with analyst expectations.
After decades of rapid growth in China, analysts say authorities now seem ready to accept a slower pace of expansion.
The figures showed that weak trade data and actions by authorities to reign in bank lending contributed to the slower growth.
“As of now, China’s gross domestic product has been staying under 8% for five straight quarters, a clear sign of distress,” said economist Ren Xianfang from IHS Global Insight.
“The rather sharp growth deceleration and the recent financial market turmoil indicate that risks have been building on both the financial and real goods sector,” she added.
The Chinese government has set a target of 7.5% growth for the whole of 2013, which would mark the lowest rate of expansion in more than two decades.
China has been a major driver of the global economy and many countries have gained because of the demand from Chinese companies, including the mining sector in Australia.
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“The focus is still on reforms. The chances of a cut in interest rates or banks’ reserve ratio look slim,” said Xu Hongcai, senior economist at the China Centre for International Economic Exchanges (CCIEE).
Tony Evans - Tokyo 