Chinese growth slows in 2016 with outlook uncertain

BEIJING: China’s economy grew last year at its slowest rate in more than a quarter- century but while yesterday’s data pointed to muchneeded stability, Beijing is bracing for an uncertain outlook that could see a trade stand- off with Donald Trump.

After a tumultuous start to 2016, the country’s leaders managed to steer the world’s number two economy with further stimulus to hit their annual target and even record the first quarterly pick-up in two years.

The Asian giant is a crucial driver of global growth but Beijing is trying to reduce its heavy reliance on exports and state-backed investment and instead focus on domestic consumer spending to drive expansion.

However, the transition has proved bumpy, with the crucial manufacturing sector struggling in the face of sagging global demand for its products and excess industrial capacity left over from an infrastructure boom.

This led to the economy growing 6.7 per cent last year, in line with forecasts in an AFP survey but down from 6.9 per cent in 2015, and the worst reading since 1990. The government targeted 6.5-7.0 per cent. The October-December increase of 6.8 per cent also marked the first quarterly improvement since the final three months of 2014. The National Bureau of Statistics called the figure a “good start” for the government’s goal of achieving 6.5 per cent annual growth through 2020.

“China’s economy was within a proper range with improved quality and efficiency. However, we should also be aware that the domestic and external conditions are still complicated and severe,” the NBS said in a statement. — AFP