April 14, 2013, 10:08 p.m. ET
BEIJING—China's economic growth slowed unexpectedly in the first quarter, raising concerns that a recovery that started in the second half of last year is already losing steam.
Gross domestic product grew 7.7% on a year-to-year basis in the first quarter, down from 7.9% in the fourth quarter of 2012 and lower than many economists forecast, according to Chinese official data released on Monday. The median GDP forecast of 14 analysts polled by The Wall Street Journal was 8%.
With the recovery in the U.S. economy still weak, and problems in Cyprus underscoring Europe's lingering debt issues, disappointing growth in China could cast a pall over the global investment outlook. Asian markets fell broadly after the data release Monday morning.
Government officials on Monday cited both the global situation and domestic controls such as efforts to slow property speculation. They also said the data reflected China's increasing emphasis on stable growth rather than the breakneck pace that has resulted in social and environmental woes and other imbalances.
Source:http://online.wsj.com/article/SB10001424127887323346304578423431110506270.html?mod=WSJ_hp_LEFTWhatsNewsCollection
2 comments:
If this “disappointing growth” in China is already hurting other Asian markets, it is only a matter of time before other markets see its effects. The global economy does not seem to be recovering as quickly as forecasters previously predicted.
The slowing of Chinese growth rates does not seem very surprising considering the global situation. A country like China that relies heavily on global imports and exports will suffer from the recessions of other countries. Moreover, the fact that China's growth has been so fast implies that it will slow as it starts to catch up to the levels of other countries.
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