China losing steam fast as economy slows down to 6-year lows

China losing steam fast as economy slows down to 6-year lows

• Representational image File Photodna Research & Archives

China’s economy grew 7.0% in the first quarter, as expected but still its slowest rate in six years, reinforcing bets that policymakers will take more steps to bolster growth.

Economists polled by Reuters had expected China’s gross domestic product (GDP)to rise 7.0% in January-March compared with a year ago.

In the last quarter of 2014, China’s economy grew 7.3% on an annual basis.

On a quarterly basis, economic growth slowed to 1.3% between January and March after seasonal adjustments, the National Bureau of Statistics said on Wednesday, compared with growth of 1.5% in the previous three months.

Analysts had expected quarterly growth of 1.4%.

Activity indicators for March were all weaker than expected.

Factory output climbed 5.6% in March from a year ago, below forecasts for a 6.9% gain.

Fixed-asset investment, a vital driver of the economy, rose 13.5% compared with the same month last year. Analysts had expected a rise of 13.8%.

Retail sales expanded 10.2% compared with expectations for a 10.9% gain.

The disappointing data supports analysts’ predictions for China’s economic growth to slide to 7% this year, the lowest in a quarter of a century.

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