In China, GDP Growth Falls To Lowest Level In Nearly 30 Years

  • In China, GDP Growth Falls To Lowest Level In Nearly 30 Years

In China, GDP Growth Falls To Lowest Level In Nearly 30 Years

Apart from the gender disparity, China faces an increasingly elder population that poses a social and an economic challenge to the world's second largest economy.

Beijing's policymakers had projected growth of between 6% and 6.5% for the year.

But most of the USA tariffs on Chinese imports remain in place.

China said Friday its economy grew by 6.1% in 2019, meeting expectations even amid a trade dispute with the U.S. Analysts polled by Reuters had expected China's economy to have grown 6.1% in 2019, compared with 6.6% in 2018. Yet China's economy remains clouded by so much opacity and state-involvement that it remains hard to know how accurate the economic figures are.

Separately, urban and rural per capita disposable income reached 42,359 yuan and 16,021 yuan in 2019, up 5 per cent and 6.2 per cent in real terms after deducting price factors, respectively, it said.

The number of births per 1000 people declined to 10.48, the lowest level on record according to National Bureau of Statistics data going back to 1949 when the Communist Party took power.

While recent data have pointed to some signs of improvement in the ailing manufacturing sector, and a newly-signed Sino-U.S. trade deal has helped revive business confidence, analysts are not sure if the gains can be sustained. "The outlook for 2020 is for continued robust growth, boosted by the Phase One trade deal with the USA and the continued positive impact of government monetary and fiscal policy stimulus measures".

Infrastructure investment grew just 3.8pc in 2019, decelerating from 4pc in January-November, despite sharply higher local government bond issuance and other policy measures.

"It showed that the quality of China's economic development is improving", Ning said, adding that "China's pace of progress is unstoppable".

The headline figure was in line with forecasts of the International Monetary Fund and the World Bank for China's economic growth this year, the Post report said.

However, significant from the Chinese government's perspective, the GDP expanded to $14.38 trillion from last year's $13.1 trillion. Corporate bond defaults hit a new record past year, while state linked firms had to step in to rescue several troubled smaller banks. The slower growth in real incomes was partly due to higher inflation, according to Ning, who said he expects personal income and consumption to continue growing this year.