China’s economy grew at an annual rate of 6.7 per cent in the first quarter of the year marking the slowest quarterly growth in seven years.
The economy expanded by 6.8 per cent, the the final quarter of 2015.
The service sector, in particular, slowed down to 7.6 per cent year-over-year growth from 8.2 per cent.
China’s economy grew by 6.9 per cent during a turbulent 2015, the slowest growth rate recorded by the country in a quarter of a century. The figure is down from 7.3 per cent in 2014 and is the lowest reported by China since 1990.
Investec Wealth and Investment head of investment strategy John Wyn-Evans says the new GDP data has generated “no real surprises”.
Wyn-Evans says: “That in itself is no surprise, as the government has already made its growth targets perfectly clear, and we know that these are on a falling trend – just be prepared for more scaremongering headlines about its slowest growth in X number of years.
“The key point is that investors now generally understand that China is in the midst of a bumpy transition towards a more consumer-led economy, which ultimately promises to grow more slowly, but more sustainably, with less emphasis on the import of hard commodities. Managing that transition flawlessly is likely to prove hard, though, so we can still expect the odd bout of nerves.”