China posts slowest economic growth in 28 years

Delivery drivers have seen a fall in jobs

Image Delivery drivers have seen a fall in jobs

According to official government data, the economy grew 6.6 percent past year with growth in the fourth quarter falling to an annual rate of 6.4 percent-the lowest level since the early months of the financial crisis a decade ago.

The 6.6 per cent is above the official target of around 6.5 per cent, according to the data published the NBS.

Data released on Monday showed Chinese economic growth slowing to 6.4% during the fourth quarter, the lowest in nearly a decade and the third quarter in a row of slowing growth.

Growing signs of weakness in China-which has generated almost a third of global growth in recent years-are fueling anxiety about risks to the world economy and are weighing on profits for firms ranging from Apple to big carmakers.

"We acknowledge that a stronger-than-expected fiscal and monetary policy response from China, and/or supply disruptions (i.e., Chuquicamata in copper, Chinese smelting constraints in zinc), may support higher price estimates". The move comes a little over a week after reports that USA and Chinese officials had made progress on efforts to get China to nail down plans to purchase increased amounts of us agricultural, energy, and manufactured goods and services, Reuters reported on January 10.

FAI rose by 5.9 percent year-on-year in 2018, 0.5 percentage points faster than that recorded in the first three quarters, NBS data showed.

CNBCsaw a few bright spots in the Chinese economic report, such as better-than-expected industrial growth and retail sales data, but then noted some of this seemingly positive news is actually a short-lived artificial boost caused by "exporters rushing to ship their goods out of China before new USA tariffs hit".

Retail sales grew 8.2 per cent December compared to a year earlier, up slightly from 8.1 per cent in November, which was the lowest growth rate in 15 years.

Sources have told Reuters that Beijing was planning tolower its growth target to 6-6.5 percent this year from around6.5 percent in 2018.

Communist leaders are trying to steer China to slower, more self-sustaining growth based on consumer spending instead of trade and investment.

"There is some risk of a hard Brexit, but we would really only put that at 10 percent", he said. China is the world's largest auto market and sales fell past year for the first time since 1991, contracting by 4 percent.

One reason for China's slow growth has been the country's trade war with the United States.

In a draft of China's new sweeping Civil Code, due to be introduced in 2020, all mention of "family planning" has been removed, suggesting that the limit on family sizes could be lifted. Following the data, analysts were split over how much confidence the most recent numbers inspire, though most agreed the government will react if the data worsens.

More importantly, employment and wage growth are facing downward pressure this year.

By increasing imports, analysts said China would provide more benefits to the rest of the world.

Analysts fear that China's growth could take another hit if a three-month ceasefire ends in March without any deal in place.

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